1-

A firm needs to issue some stocks for a project. It just paid a dividend of $3 per share, and the next dividend will be paid in exactly one year. Its dividend is expected to grow at 596 forever, and current stock is trading at $50 per share. Suppose the flotation cost is 1%, what is the cost of new equity? 06.096 O 11.4% O 12.49 O 11.1% QUESTIONS 12.5 pc A firm issued 100,000 shares of corporate bond. The bond has a maturity of 15 years, 5% coupon rate with semi- annual coupon payments, $1,000 face value, and a price of $950. Suppose the corporate tax rate is 40%, what is the after-tax cost of debt? O 3.30% O 5.49% O 1.15% 0 2.75%