Problemsun instruments expects to issue new stock at 34 a, Ask an Expert

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Problem:

Sun Instruments expects to issue new stock at $34 a share with estimated flotation costs of 7 percent of the market price. The company currently Pays $2.10 cash dividend and has a 6 percent growth rate.

Required:

Question: What are the costs of retained earnings and new common stock?

Note: Please answer in proper manner and show all computations

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169077

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