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) 12.53 C) 11.60 D) 11.79 E) 11.51
Question 2
All of the following affect the value of a share of common stock EXCEPT
A) investors' required rate of return.
B) the stock and paid-in-capital amounts on the balance sheet.
C) the dollar amount of the dividends.
D) the future growth rate for dividends.
Common arachnids.
Common crustaceans.
Common postural abnormalities
Common Bacterial Pathogens
Added Sugar in Common Foods