Compute the cost of retained earnings

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Reference no: EM131616028

Cost of New Common Stock. Indi Co's common stock is selling for $50. Last year’s dividend was $4.8 per share. Compute the cost of retained earnings (or internal equity) if both earnings and dividends are expected to grow at zero percent.Marist Co.’s common stock is selling for $50. Last year’s dividend was $4.8 per share. Compute the cost of retained earnings (or internal equity) if both earnings and dividends are expected to grow at a constant rate of 9 percent.

Reference no: EM131616028

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