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%

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Immigrating

The act of moving to a new country or region with the intention of settling and living there, often driven by factors such as employment, family, or refuge.

Discriminate

To unjustly differentiate or distinguish between people based on race, age, sex, or other prejudicial status.

Prejudiced

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