Calculate the cost of issuing new common stock

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Reference no: EM132033822

Twister Corporation is expected to pay a dividend of $7 per share one year from now on its common stock, which has a current market price of $143. Twister's dividends are expected to grow at 13 percent.

a. Calculate the cost of the company's retained earnings.

b. If the flotation cost per share of new common stock is $4, calculate the cost of issuing new common stock.

Reference no: EM132033822

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