Hoak Company's ordinary shares are currently selling for $50 per share.Last year's dividend was $1.83 per share.Investors expect dividends to grow at an annual rate of 9% into the future.
a.What is Hoak's cost of ordinary equity?
b.Selling new ordinary shares is expected to decrease the price of the stock by $5.00.What is the cost of new ordinary shares? Dividends will remain the same.

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The Answer of Hoak Company's ordinary shares are currently selling for $50 per share.Last year's dividend was $1.83 per share.Investors expect dividends to grow at an annual rate of 9% into the future.
a.What is Hoak's cost of ordinary equity?
b.Selling new ordinary shares is expected to decrease the price of the stock by $5.00.What is the cost of new ordinary shares? Dividends will remain the same.

Hoak Company's Ordinary Shares Are Currently Selling for $50 Per