Weaver chocolate co expects to earn 350 per share the next, Ask an Expert

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Weaver Chocolate Co. expects to earn $3.50 per share the next year, its expected dividend payout ratio is 75%, its expected constant dividend groth rate is 6.0%, and its common stock currently sells for $32.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91613865

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