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    Determine the cost of equity raised through selling new stock using the dividend growth model approach

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    Current per share market price $48.00
    Most recent per share dividend $3.50
    Expected long-term growth rate 5.0%

    Timer can issue new common stock to net the company $44 per share. Determine the cost of equity raised through selling new stock using the dividend growth model approach. (Compute answer to the nearest .1%).
    a. 12.3%
    b. 13.4%
    c. 13.0%
    d. 12.7%

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    https://brainmass.com/business/accounting-for-corporations/cost-equity-raised-through-selling-new-stock-dividend-116223

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    Timer can issue new common stock to net the company $44 per share. Determine the cost of equity ...

    Solution Summary

    This solution determines the cost of equity raised through selling new stock using the dividend growth model approach.

    $2.49

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