New common stock can be sold to net the company 11 per


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.

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Finance Basics: New common stock can be sold to net the company 11 per
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