What is the companys cost of common equity if all of its

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Reference no: EM13619640

1. Javits & Sons' common stock currently trades at $37.00 a share. It is expected to pay an annual dividend of $2.75 a share at the end of the year (D1 = $2.75), and the constant growth rate is 6% a year.

2. 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.
%
3. If the company were to issue new stock, it would incur a 14% flotation cost. What would the cost of equity from new stock be? Round your answer to two decimal places. %

Reference no: EM13619640

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