5. A company has 5,000,000 ordinary shares. outstanding. The market price of the share is 96 while...

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5. A company has 5,000,000 ordinary shares. outstanding. The market price of the share is 96 while the book value is 65. The firm's earnings and dividends per share are *10 and 7 respectively. The company wants to issue 1,000,000 shares with a net proceeds of *80 per share. What is the cost of capital of the new issue?

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