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Business, 20.08.2019 21:10 studybug7952

Keystone corporation will issue new common stock to finance an expansion. the existing common stock just paid a $1.50 dividend, and dividends are expected to grow at a constant rate 8% indefinitely. the stock sells for $45, and flotation expenses of 5% of the selling price will be incurred on new shares. what is the cost of new common stock be for keystone corp.? a) 11.33%b) 11.51%c) 11.60%d) 11.79%e) 12.53%

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Keystone corporation will issue new common stock to finance an expansion. the existing common stock...
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