Corporate Fin Focused Approach
5th Edition
ISBN: 9781285660516
Author: EHRHARDT
Publisher: Cengage
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Transcribed Image Text:A new common stock issue paid a $2.10 dividend last
year.
The par value of the stock is $20, and the firm's
dividends per share have grown at a rate of 6.5% per
year. The growth rate is expected to continue in the
foreseeable future. The price of this stock is now
$32.80.
The cost of common equity for the firm is
%.
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