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Cost of internal common equity

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Jiffy CO. expects to pay a dividend of $2.55 per share in one year. The current price of Jiffy common stock is $38.68 per share. FLotation costs are $2.85 per share when Jiffy issues new stoc. What is the cost of internal common equity(retained earnings) if the long term growth in dividends is projected to be 4% indefintiely?

Reference no: EM131758116

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