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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 $40 and flotation costs for the new equity are expected to be 6%. Which of the following should Marvin use as the component cost of new equity when deriving the discount rate for analysis of the planned project?3 r& H/ c5 k5 T! L8 G7 W p. G
2 S( ^ N% L1 ~6 _5 k" t- U- A答案和详解如下:
3 ^1 ]* L$ b1 P2 Y1 c. L$ e5 y( { |
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