As the Winner of a Contest, You Are Now CFO

question 77

Multiple Choice

As the winner of a contest, you are now CFO for the day for Maguire Inc.and your day's job involves raising capital for expansion.Maguire'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 reinvested earnings?

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

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Job Supervision

The act of overseeing and directing the work and tasks of employees to ensure organizational goals are achieved.

Job Specification

A detailed description of the duties, responsibilities, required qualifications, and reporting relationships of a particular job.

Job Description

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Job Specifications

A detailed description of the qualifications, skills, and experience required to perform a job.