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Question 76
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& c1 Y0 c% Q) b8 b3 kMarvin Corporation plans to raise $600 million in new equity capital to purchase an automated material handling system. Marvin’s most recent dividend was $1.25 per share and long-term dividend growth is expected to be 5%. The current price of Marvin’s common shares is $40 and flotation costs for the new equity are expected to be 6%. Which of the following should Marvin use as the component cost of new equity when deriving the discount rate for analysis of the planned project?8 e( {% a! y7 U$ i7 Q; X L& C
6 l( N, S9 ?6 |$ G6 Z: r4 y# j答案和详解如下:' ~( I: J' Y! c5 U# d
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