What is the cost of external common equity

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Jiffy Co. expects to pay a dividend of $1.00 per share in one year. The current price of Jiffy common stock is $45 per share. Flotation costs are $2.50 per share when Jiffy issues new stock. Jiffy Co.’s long-term growth in dividends is projected to be 5.5 percent indefinitely? What is the cost of internal common equity? What is the cost of external common equity?

Reference no: EM13928083

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