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A company has recently paid a dividen of 2.50$ and is expecting to increase the dividend by 3% per year, indefinitely. The current share price
A company has recently paid a dividen of 2.50$ and is expecting to increase the dividend by 3% per year, indefinitely. The current share price for the companys common stock is 23$. Beta is 1.2. The flotation costs of both the common stock and proffered stock will be $2.50 per share. The companys marginal tax rate is 40%. What is the cost of newly issued common stock?
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