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Business, 16.04.2020 00:34 claudiam1106

Pepper Inc.’s common stock currently sells for $15.00 per share, the company expects to pay $1.925 dividend in the coming year and it expects the dividend to grow at a constant growth rate of 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? Do not round your intermediate calculations. Hint: Re-Rs

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Pepper Inc.’s common stock currently sells for $15.00 per share, the company expects to pay $1.925 d...
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