What is the cost of internal common equity

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Jiffy Co. expects to pay a dividend of $3.50 per share in one year. The current price of Jiffy common stock is $56 per share. Flotation costs are $4.00 per share when Jiffy issues new stock. What is the cost of internal common equity if the long-term growth in dividends is projected to be 8.5 percent indefinitely?

Reference no: EM131929640

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