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Business, 12.08.2020 18:01 britney9285

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $3.00 per share, and the current price of its common stock is $60 per share. The expected growth rate is 8 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Cost of retained earnings___%
b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Cost of new common stock %

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Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the...

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