What is the company cost of common equity

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Javits & Sons' common stock currently trades at $28.00 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year (D1 = $3.00), and the constant growth rate is 8% a year.

What is the company's cost of common equity if all of its equity comes from retained earnings? Round your answer to two decimal places.

%

If the company were to issue new stock, it would incur a 8% flotation cost. What would the cost of equity from new stock be? Round your answer to two decimal places.

%

Reference no: EM131595139

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