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a company's new stock sells for $115.00 per share. the last dividend paid was $3.00, the long-term constant growth estimate is 6% and new stock
a company's new stock sells for $115.00 per share. the last dividend paid was $3.00, the long-term constant growth estimate is 6% and new stock issues incur a 5% floatation cost. If the company were to issue new stock, what is the firms cost
a. 8.21%
b. 8.63%
c. 8.75%
d. 8.91%
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
