What is its annual cost of internal financing

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Question - A company's common stock has a market value of $23.48 per share and its next dividend is expected to be $1.80 per share. The stock's beta is 1.2 and the market risk premium is 6.4% per year. If the company's dividends are expected to grow forever at a constant rate of 4.8% per year and the tax rate is 40%, what is its annual cost of internal financing?

Reference no: EM132776353

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