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)
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
$3.24
7%
$78.24
$4.88
?
r=[$3.24*(1+0.07)/(78.24 – 4.88)]0.07
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