What would be the cost of equity from new common


Weaver Brothers expects to earn $3.50 per share (E_1), and has an expected dividend payout ratio of 60%. Its expected constant dividend growth rate is 6.2%, and its common stock currently sells for $30 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?

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Financial Management: What would be the cost of equity from new common
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