Currently, Builtrite stock is selling for $62 a share and ha…
Currently, Builtrite stock is selling for $62 a share and has paid a $4.82 dividend. Dividends are expected to continue growing at 10%. Flotation costs would be $3.75 a share and Builtrite has $350,000 in available retained earnings. Assume a 34% tax bracket. The after-tax cost of new common is:
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