(Cost of equity) the common stock for the Bestsold Corporation sells for $57. If a new issue is sold, the flotation costs are estimated to be 9 percent. The company pays 70 percent of its earnings in dividends, and a $4.20 dividend was recently paid. Earnings per share 6 years ago were $4.00. Earnings are expected to continue to grow at the same annual rate in the future as during the past 6 years. The firm’s marginal tax rate is 35 percent. Calculate the cost of (a) internal common equity and (b) external common equity.
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
