Determine the costs of internal and external equity

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Reference no: EM132028643

T Company’s ordinary share dividends have grown over the past 5-year period from $0.69 per share to $0.89 (today). Assume that T’s dividends are expected to grow at this rate for the foreseeable future. T’s stock is currently selling for $10.50 per share. New common stock can be sold to net the company (ie after capital raising costs) $9.90 per share. Determine the costs of internal and external equity to T.

Reference no: EM132028643

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