Costs of internal and external equity


A company's common stock dividends have grown over the past 5-year period from $0.60 per share to $0.89 (today). Assume that dividends are expected to grow at this rate for the foreseeable future. The company's stock is currently selling for $12 per share. New common stock can be sold to net the company $11 per share. Determine the costs of internal and external equity for this firm.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Costs of internal and external equity
Reference No:- TGS039293

Expected delivery within 24 Hours