Calculate the cost of common equity financing using gordon


Last year the Black Water Inc. paid dividends $2.57. Company’s dividends are expected to grow at an annual rate of 2% forever. The company’s common stock is currently selling on the market for $64.40. The investments banker will charge flotation costs $4.90 per share. Calculate the cost of common equity financing using Gordon Model. Round the answers to two decimal places in percentage form.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Calculate the cost of common equity financing using gordon
Reference No:- TGS02249642

Expected delivery within 24 Hours