The cost of retained earnings is ____(Round to two decimal places.) The cost of new common stock is _____(Round to two decimal places.) Using the cost of retained earnings, the firm's WACC is _____(Round to two decimal places.) Using the cost of new common stock, the firm's WACC is ______(Round to two decimal places.)
Dillon Labs has asked its
Debt The firm can sell for $1030 a 13-year, $1,000-par-
Common stock The firm's common stock is currently selling for $60 per share. The stock has paid a dividend that has gradually increased for many years, rising from $2.75 ten years ago to the $5.41 dividend payment, D0, that the company just recently made. If the company wants to issue new common stock, it will sell them $3.50 below the current market price to attract investors, and the company will pay $2.00 per share in flotation costs.
The cost of retained earnings is ____(Round to two decimal places.)
The cost of new common stock is _____(Round to two decimal places.)
Using the cost of retained earnings, the firm's WACC is _____(Round to two decimal places.)
Using the cost of new common stock, the firm's WACC is ______(Round to two decimal places.)
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