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Question 76
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Marvin 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 $40 and flotation costs for the new equity are expected to be 6%. Which of the following should Marvin use as the component cost of new equity when deriving the discount rate for analysis of the planned project?7 r4 |+ K9 Y# C: F
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答案和详解如下:1 Z. Q0 D% L; J1 a& y$ v$ v$ Z
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