Cost of equity raised by selling new common stock


Question:

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $72.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

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Finance Basics: Cost of equity raised by selling new common stock
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