Question
A stock is trading for 32, and just paid a dividend of 0.5 which is expected to grow at a fraction 0.14 per year. If
A stock is trading for 32, and just paid a dividend of 0.5 which is expected to grow at a fraction 0.14 per year. If Goldman Sacs charges a fraction 0.08 as a flotation cost, what is the required rate of return on a new stock issue?
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Financial Markets And Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakin
7th Global Edition
0273754440, 9780273754442
