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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 $30, the most
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $30, the most recent dividend was $3 per share, and the dividend is expected to grow at a rate of 6% forever. Flotation costs for this issue are expected to be 9%. What is the required rate of return (or financing cost) in this new issue?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
