Attempts e cost of capital Keep the Highest/ 5. 5: The Cost of Capital: Cost of New Common Stock X ad Study Tools tions access Tips If a firm plans to issue new stock, fotation costs (investment bankers') should not be ignored. There are presto flotation costs. The first approach is to add the sum of flotation costs for the debt preferred, and common stock and cost. Because the investment cost is increased, the project's expected rate of return is ce soit may not of the project. The second approach involves adjusting the cost of common equity as follows: D. Cost of equity from new stock Tea +8 PIT- scess Tips OR YOU Tools The difference between the flotation-adjusted cost of equity and the cost of aquity calculated without the potation adjustments that cost adjustment Quantitative Problem: Barton Industries expects next year's annual dividend. Dito be $1.90 and expects videos to you 4.3%. The firm's current common stock price. Po $20.00. If it needs to issue new common stock, the firm will enters foot What is the flotation cost adjustment that must be added to its cost of retained earning Do not round intermediate ca and me two decimal places. BI Introductory nce > What is the cost of new common equity considering the estimate made from the thesion methodologies Donato calculations. Round your answer to two decimal places. 96 41 Pack Attempts e cost of capital Keep the Highest/ 5. 5: The Cost of Capital: Cost of New Common Stock X ad Study Tools tions access Tips If a firm plans to issue new stock, fotation costs (investment bankers') should not be ignored. There are presto flotation costs. The first approach is to add the sum of flotation costs for the debt preferred, and common stock and cost. Because the investment cost is increased, the project's expected rate of return is ce soit may not of the project. The second approach involves adjusting the cost of common equity as follows: D. Cost of equity from new stock Tea +8 PIT- scess Tips OR YOU Tools The difference between the flotation-adjusted cost of equity and the cost of aquity calculated without the potation adjustments that cost adjustment Quantitative Problem: Barton Industries expects next year's annual dividend. Dito be $1.90 and expects videos to you 4.3%. The firm's current common stock price. Po $20.00. If it needs to issue new common stock, the firm will enters foot What is the flotation cost adjustment that must be added to its cost of retained earning Do not round intermediate ca and me two decimal places. BI Introductory nce > What is the cost of new common equity considering the estimate made from the thesion methodologies Donato calculations. Round your answer to two decimal places. 96 41 Pack
