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A firm has just paid a dividend of $1.5 per share (Do = $1.5) and its common stock now sells for $25 per share.
A firm has just paid a dividend of $1.5 per share (Do = $1.5) and its common stock now sells for $25 per share. The firm's dividend growth rate is 10% every year. The firm plans to issue the new common stock and the percentage flotation cost required to sell the new common stock is 12%. What is the firm's cost of new common stock, ke?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
