Question
Bike Inc. wishes to issue new stock to finance an aggressive expansion. Gyro investment bank charges a flotation cost of 0.16 as a fraction of
Bike Inc. wishes to issue new stock to finance an aggressive expansion. Gyro investment bank charges a flotation cost of 0.16 as a fraction of each stock sold. Bike Inc. current stock price is 71, and it expects to pay a dividend of 0.89 at the end of the year. What is Bike Inc. component cost of a new equity issue?
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Financial Management Principles And Applications
Authors: Sheridan Titman
9th Edition
0655705457, 9780655705451
