Finance

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Tutor: None Selected Time limit: 3 Days

A new common stock issue that paid a $1.76 dividend last year. The firm's dividends are expected to continue to grow at 6.5% per year forever. The price of the firm's common stock is now 27.62. The cost of capital from the common equity is?
Sep 15th, 2013
Cost of Equity Capital = D0*(1+g)/Price + g = (1.76*(1.065)/27.62) + .065 = 13.286%
Sep 15th, 2013

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Sep 15th, 2013
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Sep 15th, 2013
May 28th, 2017
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