(Solution) - Pathos Co s common stock is currently selling for 23 80 -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pathos Co.?s common stock is currently selling for $ 23.80. Dividends paid last year were $ 0.70. Flotation costs on issuing stock will be 10 percent of market price. The dividends and earnings per share are projected to have an annual growth rate of 15 percent. What is the cost of internal common equity for Pathos?