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Finance 1 answer below » Eakins Inc.’s common stock currently sells for $45.00 per share, the company expects to earn $2.75 per share during the current year, its expected
payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost
of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? View complete question » a. 0.84% b. 0.09% c. 0.37% d. Eakins Inc.’s common stock currently sells for $45.00 per share, the company expects to earn $2.75 per share during the current year, its expected
payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost
of 8% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings? a. 0.84% b. 0.09% c. 0.37% d. 0.19% e. 0.56% Hide FeedbackShow All Feedback
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Solution View less » Jan 18 2014 04:44 AM
