Business, 27.11.2020 20:30 AeelynRamos
Bonanza Gold’s common stock currently sells for $32 per share. Bonanza’s investment banker charges 6.5 percent flotation costs when new common stock is issued. The company expects to pay a $3.36 per share dividend at the end of the year. If Bonanza’s cost of retained earnings is 15.5 percent, what is its cost of new common equity?
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Bonanza Gold’s common stock currently sells for $32 per share. Bonanza’s investment banker charges 6...
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