corporation beta sells common stock for $50. the floatation cost for new issue of stocks will be 5 percent. the company pays 50 percent of its earnings in dividends, and a $4 dividend was recently paid. earnings per share 5 years ago were $5. earnings are expected to continue to grow at the same annual rate in the future as during the past 5 years. the tax rate is 25 percent. calculate (a) internal common equity and (b) external common equity.
