Caspian Sea Drinks needs to raise $30.00 million by ssuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.44 next year, which will grow at 3.17% forever and the cost of equity to be 14.93%, then how many shares of stock must CSD sell?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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# 27
Caspian Sea Drinks needs to raise $30.00 million by
issuing additional shares of stock. If the market
estimates CSD will pay a dividend of $2.44 next year,
which will grow at 3.17% forever and the cost of equity
to be 14.93%, then how many shares of stock must
CSD sell?
Submit
Answer format: Number: Round to: 0 decimal places.
unanswered
not_submitted
Attempts Remaining: Infinity
Transcribed Image Text:# 27 Caspian Sea Drinks needs to raise $30.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.44 next year, which will grow at 3.17% forever and the cost of equity to be 14.93%, then how many shares of stock must CSD sell? Submit Answer format: Number: Round to: 0 decimal places. unanswered not_submitted Attempts Remaining: Infinity
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