Lindhe, Tobias; Södersten, Jan - 2009
) criticism of the well-known King and Fullerton (1984) methodology for underestimating the cost of new share issues amounts to a … following a new issue, as assumed by King-Fullerton, the cost of capital is higher than is the case when no dividends are paid …. -- dividend taxation ; share repurchases ; equity trap ; cost of capital ; nucleus theory ; growth path …