Cost of Equity Example


 
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Cost of Equity Example
Brenda Conley, Member
Salte corporation is issuing new common stock at a market price of $27. Dividends last year were $1.45 and are expected to grow at an annual rate of 6 percent forever. Flotation costs will be 6 percent of market price. What is salte’s cost of equity?...
 

 















 

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