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Author Question: Keystone Corporation will issue new common stock to finance an expansion. The existing common stock ... (Read 152 times)

Shelles

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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.


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jharrington11

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Shelles

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Reply 2 on: Jul 10, 2018
Gracias!


miss.ashley

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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