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Category > Business & Finance Posted 05 Aug 2017 My Price 8.00

Use the following information for the next two questions:

Use the following information for the next two questions: Angell Inc. hired you as a consultant to help them estimate their cost of capital. Angell recently paid a dividend of $1.20 per share. This dividend is expected to grow at a constant rate of 6 percent per year into the future. The current stock price is $50.00. If Angell issues new common stock, it expects to incur 5 percent flotation costs. Calculate Angell’s component cost of common equity from retained earnings. A. 7.40% B. 8.54% C. 8.40% D. 8.68% E. None of the above; the correct answer is Calculate Angell’s component cost of common equity from selling new common stock. A. 8.53% B. 8.40% C. 8.54% D. 8.68% E. None of the above; the correct answer is

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Status NEW Posted 05 Aug 2017 07:08 PM My Price 8.00

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