Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The company currently pays a $2.30 cash dividend and has a 7 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: Cost of new common stock: % %
Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The company currently pays a $2.30 cash dividend and has a 7 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: Cost of new common stock: % %
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 8PROB
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![2. Problem 21-02
Problem 21-02
eBook
Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The company currently pays a $2.30 cash dividend and has a 7 percent growth rate. What are the costs of
retained earnings and new common stock? Round your answers to two decimal places.
Costs of retained earnings:
Cost of new common stock:
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d1282c1-8c68-462d-9f98-98ae0716818d%2Fb6dac1be-c3fa-411e-b91b-fe9491e33907%2Fgd2l9t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. Problem 21-02
Problem 21-02
eBook
Sun Instruments expects to issue new stock at $39 a share with estimated flotation costs of 6 percent of the market price. The company currently pays a $2.30 cash dividend and has a 7 percent growth rate. What are the costs of
retained earnings and new common stock? Round your answers to two decimal places.
Costs of retained earnings:
Cost of new common stock:
%
%
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