The firms marginal tax rate is 34 percent what is the


The common stock for the Bestsold Corporation sells for $58. If a new issue is sold, the flotation costs are estimated to be 11 percent. The company pays 50 percent of its earnings in dividends, and a $3.00 dividend was recently paid. Earnings per share 5 years ago were $4.00. Earnings are expected to continue to grow at the same annual rate in the future as during the past 5 years. The firm's marginal tax rate is 34 percent. What is the internal common equity and the external common equity?

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Financial Management: The firms marginal tax rate is 34 percent what is the
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