11: Corporate Finance: Corporate Investing and Financing ...

An analyst has gathered the following information about a company: stocks sells for $50 per share . last dividend (D0) was $2.00 . growth rate is a constant 5 percent . the company would incur a flotation cost of 15 percent if it sold new common stock . net income for the coming year is expected to be $500,000 . the firm's payout ratio is 60 ... ................
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