Banyan Co.’s common stock currently sells for $58.25 per share. The growth rate is a constant...

Banyan Co.’s common stock currently sells for $58.25 per share. The growth rate is a constant 8%, and the company has an expected dividend yield of 2%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 10.0%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places.

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jeff jeffy answered 5 months ago

Banyan Co.’s common stock currently sells for $48.25 per share. The growth rate is a constant...

Banyan Co.’s common stock currently sells for $48.25 per share. The growth rate is a constant 4%, and the company has an expected dividend yield of 4%. The expected long-run dividend payout ratio is 35%, and the expected return on equity (ROE) is 7%. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your...

Banyan Co.’s common stock currently sells for $40.25 per share. The growth rate is a constant...

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Banyan Co.’s common stock currently sells for $40.75 per share. The growth rate is a constant...

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Banyan Co.’s common stock currently sells for $46.25 per share. The growth rate is a constant...

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