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oee [108]
3 years ago
5

Firm X just paid​ $5/share dividend. We expect the dividend to grow annually at a constant rate​ 3%. The current stock price is​

$100. If firm X issues new​ equity, the new shares would sell at​ $98/share and the firm also needs to pay investment banks​ $3/share flotation cost. What is the cost of retained​ earnings? g

Business
1 answer:
mariarad [96]3 years ago
4 0

Answer:

Cost of Earnings = (Dividends per share for next year ÷ Current market value of the stock) + Dividend growth rate

= 8.42 %

Explanation:

See Attachment

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Unique selling proposition.

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Answer:

Etter capital                           $83,000

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Explanation:

Data provided in the question:

Capital balance of  Myles Etter = $249,000

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Amount of interest sold by the Etter to Lonnie Davis = one-third

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Now,

Required entry will be as follows

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Lonnie Davis capital                                   $83,000

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Answer:

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Pure Project!! i might be wrong :)
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