Top Posters
Since Sunday
G
4
K
3
o
3
3
m
2
c
2
r
2
p
2
s
2
s
2
b
2
c
2
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
samualson samualson
wrote...
Go to Answer
Posts: 2459
Rep: 13 0
6 years ago
Keystone Corporation will issue new common stock to finance an expansion. The existing common stock just paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8% indefinitely. The stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. What is the cost of new common stock be for Keystone Corp.?
A) 11.33%
B) 11.51%
C) 11.60%
D) 11.79%
E) 12.53%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 53 times
1 Reply
Replies
Answer verified by a subject expert
guzmanguzman
wrote...
#1
Top Poster
Posts: 1068
Rep: 10 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

samualson Author
wrote...

6 years ago
Thanks
brina10
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
einstein
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  490 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 328
  
 323
  
 354
Your Opinion
What's your favorite coffee beverage?
Votes: 302
Previous poll results: What's your favorite funny biology word?