weaver chocolate co expects to gain 350 per share


Weaver Chocolate Co. expects to gain $3.50 per share during the present year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock presently sells for $32.50 per share.  New stock can be sold to the public at the present price, but a flotation cost of 5% would be incurred.  What would be the cost of retained earnings  common equity (rs) for Weaver Chocolate Co.?  What would be the cost of equity from new common stock (re)?

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Financial Management: weaver chocolate co expects to gain 350 per share
Reference No:- TGS0219782

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