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Nonchalant Actron (NA) has a current dividend (D0) of $1.80 . Dividends are expected to grow
at a rate of 7 percent a year into the foreseeable future. What is NA's cost of external equity if its
stock can be sold to net $26 a share after flotation costs? 7.2% 14.41 10.9% 11.2% 21.0%

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Nonchalant Actron (NA) has a current dividend (D0) of $1-80- Dividends.pdf

  • 1. Nonchalant Actron (NA) has a current dividend (D0) of $1.80 . Dividends are expected to grow at a rate of 7 percent a year into the foreseeable future. What is NA's cost of external equity if its stock can be sold to net $26 a share after flotation costs? 7.2% 14.41 10.9% 11.2% 21.0%