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Cost of external equity

Northeast Airlines (NA) has a current dividend of $1.80. Dividends are expected to grow at a rate of 7 percent a year into the foreseeable future. What is NA's cost of external equity if its stock can be sold to net $46 a share?

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Northeast Airlines (NA) has a current dividend of $1.80. Dividends are expected to ...

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This explains the computation of Cost of external equity

$2.19