What is cost of internal common equity

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Reference no: EM132030408

Jiffy Co. expects to pay a dividend of $4.12 per share in one year. The current price of Jiffy common stock is $30.21 per share. Flotation costs are $3.59 per share when Jiffy issues new stock. What is the cost of internal common equity if the long-term growth in dividends is projected to be 5 percent indefinitely?

Reference no: EM132030408

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