Pathos Co.'s common stock is currently selling for $24.26. Dividends paid last year were $0.80. Flotation...
Pathos Co.'s common stock is currently selling for $24.26. Dividends paid last year were $0.80. Flotation costs on issuing stock will be 12 percent of market price. The dividends and earnings per share are projected to have an annual growth rate of 12 percent. What is the cost of internal common equity for Pathos?
The cost of internal common equity for Pathos is......%
Homework Answers
cost of internal common equity=(D1/Current price)+Growth rate
=(0.8*1.12)/(24.26)+0.12
=(0.896/24.26)+0.12
=15.69%(Approx).
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Pathos Co.'s common stock is currently selling for $24.26.
Dividends paid last year were $0.80. Flotation...
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