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6. DIVIDEND VALUATION MODEL (2) The Advantage Food Corporation paid a dividend of $1.36 last year and its stock is curre
Posted: Wed Mar 09, 2022 8:42 am
by answerhappygod
- 6 Dividend Valuation Model 2 The Advantage Food Corporation Paid A Dividend Of 1 36 Last Year And Its Stock Is Curre 1 (20.43 KiB) Viewed 39 times
6. DIVIDEND VALUATION MODEL (2) The Advantage Food Corporation paid a dividend of $1.36 last year and its stock is currently selling for $33.60 per share. The
company is expected to grow at 7.5% indefinitely. (a) Estimate the firm's cost of retained earnings. ((b) if the firm has to raise capital beyond what was available from retained earnings, what would be its cost of equity from new stock if flotation costs were 12% of money raised?