What is Fallax cost of internal common equity

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Reference no: EM133054132

Question - All information has been provided (i) Describe and interpret the assumptions related to the problem.

(ii) Apply the appropriate mathematical model to solve the problem.

(iii) Calculate the correct solution to the problem. Submit all answers as percentages and round to two decimal places.

Fallax Corp. common stock is currently priced at $43.50 per share in the open market. Analysts expect Fallax to offer $1.75 per share in dividends at the end of next year, which is projected to grow at 5.2% indefinitely. What is Fallax's cost of internal common equity?

Reference no: EM133054132

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