Common equity finance problem
Calculate the cost of new common equity financing of stock Q using Gordon Model
Round the answers to two decimal places in percentage form (Write the percentage sign in the “units” box)
Last Year Dividend |
Growth Rate of Dividends |
Selling Price of Stock |
Floatation Costs |
Cost of Common Equity |
|
Stock Q |
$4.89 |
1% |
$35.37 |
$3.01 |
? |