Multiple Choice
Last year's dividend was $2.00, the anticipated constant growth rate is 5%, the selling price today is $30 per share, and flotation costs for new equity are estimated to be 10%. What is the estimated cost of retained earnings ?
A) 7.8%
B) 12.0%
C) 7.0%
D) 12.8%
Correct Answer:
Verified
Correct Answer:
Verified
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