Cost of the Common Stock Assignment | Homework For You
June 9th, 2020
11. The common stock of Lucy Inc. sells for $27.50 per share. If a new issue was to be sold the flotation costs would be 5%. Last year’s dividend was $1.80 and the anticipated growth for Lucy Inc. is 7%. What is the approximate cost of this anticipated new common stock?
a) 7.4%
b) 14.4%
c) 18.4%
d) 21.4%. Get Finance homework help today