What is the cost of external equity

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MM will issue common stock to the public for $ 28. The expected dividend and the growth on dividends are $ 2.50 per share and 5% respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equity?

What is the required rate of return on a preferred stock with a $49 par value, an annual dividend of 7% of par, and a current market price of 1) $30, 2) $45, 3) $55 and 4) $75?

A Co. is expected to pay a $ 1.25 per share dividend at the end of this year. The dividend is expected to grow at a constant rate of 7% per year. The required rate of return on the stock is 11.5%. What is the estimated value per share of the stock?

Reference no: EM132661700

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