Eakins Inc

question 54

Multiple Choice

Eakins Inc.'s common stock currently sells for $45.00 per share, the company expects to earn $2.75 per share during the current year, its expected payout ratio is 70%, and its expected constant growth rate is 6.00%. New stock can be sold to the public at the current price, but a flotation cost of 8% would be incurred. By how much would the cost of new stock exceed the cost of common from retained earnings?

• A) 0.09%
• B) 0.19%
• C) 0.37%
• D) 0.56%
• E) 0.84%

---

Definitions:

Gender Preferencing

The practice or tendency of favoring one gender over the other, which can manifest in various aspects of society, such as employment, education, and parenting.

Theory Of Mind

Children’s awareness of their own and other people’s mental processes and realization that other people do not share their thoughts.

Gender Stability

The concept that by a certain age, usually around 3 to 4 years, children start to understand that their gender will remain constant over time.

Gender Constancy

The understanding that one's gender identity is fixed and persists over time and across situations.