Cost of common equity financing using gordon model

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Reference no: EM131603443

Last year the Black Water Inc paid dividends $4.32. Copmpany’s dividends are expected to grow at an annual rate of 5% forever. The company’s common stock is currently selling on the market for $56.28. The investments banker will charge flotation costs of $2.43 per share. Calculate the cost of common equity financing using Gordon Model.

Reference no: EM131603443

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