Multiple Choice
Royal Mediterranean Cruise Line's common stock is selling for $22 per share.The last dividend was $1.20,and dividends are expected to grow at a 6% annual rate.Flotation costs on new stock sales are 5% of the selling price.What is the cost of Royal's new common stock?
A) 5.73%
B) 11.45%
C) 11.78%
D) 12.09%
Correct Answer:
Verified
Correct Answer:
Verified
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