Question
Boer Inc. expects to pay a dividend 0.6 in one year, it's current stock price is 15.0. and its dividend growth rate is 0.14. If
Boer Inc. expects to pay a dividend 0.6 in one year, it's current stock price is 15.0. and its dividend growth rate is 0.14. If Boer's investment bankers charge a flotation cost of 0.14 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
