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What is the corporation cost of internal equity

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Reference no: EM133054126

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.

Solery Corp. common stock is currently selling for $26.75 per share. The stock recently paid a dividend of $1.25 per share. Dividends are expected to grow at a constant annual rate of 3% in the foreseeable future. The corporation would like to use retained earnings to finance a new project. What is the corporation's cost of internal equity?

Reference no: EM133054126

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