Solve this plzz

IPCC 752 views 1 replies

 

company paid dividend of 8 per share last yr and its stock currently sells at 110 per share and new common stock can be sold for Rs 105 and would have a floatation cost of 5% .... growth rate is 5 %
solve this
cost of new stock??
cost of retained earning??
Replies (1)

cost of eq= 105/110-100*5%+.05=105/105+.05=1+.05=1.05

cost of retained earning=105/110+.05=


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