As a financial analyst for LLED Manufacturing you are tasked with raising equity capital.. As a financial analyst for LLED Manufacturing you are tasked with raising equity capital.ÿThe CEO would like to know by how much the cost of new stock would exceed the cost of common from reinvested earningsÿ(inÿpercent). LLED’s common stock currently sells forÿ$85ÿper share,ÿthe company expects to earnÿ$5ÿper share during the current year,ÿits expected payout ratio isÿ47%,ÿand its expected constant growth rate isÿ5%.ÿNew stock can be sold to the public at the current price,ÿbut a flotation cost ofÿ4%ÿwould be incurred.
As a financial analyst for LLED Manufacturing you are tasked with raising equity capital.
