1. jiffy Co. expects to pay a dividend of $2.00 per share in one year. The current price of liffy common stock is $20 per share. Flotation costs common equity (retained earnings) if the long-term growth in dividends is projected to be 6 percent indefinitely? 16.00 percent O 16.53 percent O16.60 percent 10.60 percent.
2. You want to be able to withdraw $20,000 each year for 15 years. Your account earns 6% interest.
a) How much do you need in your account at the beginning? $
b) How much total money will you pull out of the account? $
c) How much of that money in intrest? $