The Common Stock for El Viss Company Currently Sells for $20

question 20

Essay

The common stock for El Viss Company currently sells for $20 per share.The firm just paid a dividend of $1.50,and the dividend three years ago was $1.30.Dividends per share are anticipated to grow at the same rate in the future as they have over the past three years.Flotation costs for new shares will be 6% of the selling price.Calculate the following:
a.the cost of retained earnings
b.the cost of external equity capital

---

Definitions:

Single-blind Experiment

A type of experiment where the participants do not know which group (control or experimental) they belong to, but the researchers do.

Experimental Group

A group in a scientific study that is exposed to the variable being tested, in contrast to the control group.

Control Group

In an experiment, the group that is not exposed to the treatment, serving as a comparison point for assessing the effect of that treatment.

Independent Variable

In an experiment, it is the variable that is controlled or changed to test its effects on the dependent variable.