Determine the costs of internal and external equity

Reference no: EM131947191

Tony Company’s common stock dividends have grown over the past 6-year period from $0.60 per share to $0.90 (today). Assume that Tony’s dividends are expected to grow at this rate for the foreseeable future. Tony’s stock currently selling for $14.5 per share. New common stock can be sold to net company $13.5 per share. Determine the costs of internal and external equity to Tony Company’s. Show work.

Reference no: EM131947191

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