What is the company cost of common equity

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Reference no: EM131915018

Midyear on July 31st, the Andrews Corporation's balance sheet reported: Total Liabilities of $82.529 million Cash of $10.050 million Total Assets of $224.741 million Retained Earnings of $83.363 million. What was the Andrews Corporation's common stock?

a. $68.899 million

b. $225.575 million

c. $235.625 million

d. $58.849 millionJarett & Sons's common stock currently trades at $29.00 a share. It is expected to pay an annual dividend of $1.25 a share at the end of the year (D1 = $1.25), and the constant growth rate is 4% 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. Do not round your intermediate calculations.

If the company issued new stock, it would incur a 8% flotation cost. What would be the cost of equity from new stock? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131915018

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