Jarett & son's common stock currently trades at $30.00 a share. it is expected to pay an annual divident of $1.00 a share a the end of the year(d1=1.00) and the constant growth rate is 4% a year
a) what is the company's cost of common equity if all of its equity comes from retained earnings?
b) if the company issued new stock, it would incur a 10% flotation cost. what would be the cost of equity from new stock?
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