How I RESOLVE THIS PROBLEM Sun instrument expects to issue new stock at $34 a share with estimated flotation costs of 7 percent of the market price. The comapny currently pays a $ 2.10 cash dividend and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?

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Q: common

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A: Expected stock price is calculated by following formula:-Expected stock price =

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Q: Suppose instead that the company is about to pay a dividend of $2.00 per share. You also learn that…

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Q: If retained earnings were used instead of new issuances, what wo

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Q: Jarett & growth rate is 8% a year. a. What is the company's cost of common equity if all of its…

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A: D1 = $2 g= 4.9% Current stock price =P0 = $23.50 Flotation cost = 4.9% Cost of equity without…