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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?% o6 D2 p( s: x9 P0 s9 C5 l
' j2 x. b+ H4 I! L- G4 |: L答案和详解如下:2 \& `# t: {) ~/ A0 S5 j
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