What is the cost of internal common equity retained


Jiffy Co. expects to pay a dividend of $4.12 per share in one year. The current price of Jiffy common stock is $30.21 per share. Flotation costs are $3.59 per share when Jiffy issues new stock. What is the cost of internal common equity (retained earnings) if the long-term growth in dividends is projected to be 5 percent indefinitely? Round to two decimals

Solution Preview :

Prepared by a verified Expert
Mathematics: What is the cost of internal common equity retained
Reference No:- TGS02714845

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)