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A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $29, the most recent
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $29, the most recent dividend was $2 per share, and the dividend is expected to grow at a rate of 3% forever. Flotation costs for this issue are expected to be 10%. What is the required rate of return (or financing cost) in this new issue?
Enter your answer as a percentage, without the percentage sign ('%'), and rounded to two decimals. So, if your answer is 0.123456, enter 12.34.
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