EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Kinslow Manufacturing Company paid a dividend.... Please provide answer the financial accounting question

Kinslow Manufacturing Company paid a dividend yesterday of
$2.50 per share. The dividend is expected to grow at a constant
rate of 5% per year. The price of Kinslow's common stock today
is $25 per share. If Kinslow decides to issue new common stock,
flotation costs will equal $2.00 per share.
Calculate the cost of retained earnings.
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Transcribed Image Text:Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The price of Kinslow's common stock today is $25 per share. If Kinslow decides to issue new common stock, flotation costs will equal $2.00 per share. Calculate the cost of retained earnings.
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