White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If White Lion expects to incur flotation costs of 6.50% of the value its newly- raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be

White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If White Lion expects to incur flotation costs of 6.50% of the value its newly- raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be

Name: White Lion Homebuilders has a current stock price of $22.35 per share
Uploaded: 2024-03-20T06:51:32.000Z
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Description: White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of$1.36 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the constantrate of 8.70%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 22P

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