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Business, 20.08.2019 19:10 avision42

Sentry manufacturing paid a dividend yesterday of $5 per share (d0 = $5). the dividend is expected to grow at a constant rate of 8% per year. the price of sentry manufacturing's stock today is $29 per share. if sentry manufacturing decides to issue new common stock, flotation costs will equal $2.50 per share. sentry manufacturing's marginal tax rate is 35%. based on the above information, the cost of retained earnings isa) 28.38%.b) 24.12%.c) 26.62%.d) 31.40%.

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