Question
Boer Inc. expects to pay a dividend 1.2 in one year, it's current stock price is 10.0. and its dividend growth rate is 0.20. If
Boer Inc. expects to pay a dividend 1.2 in one year, it's current stock price is 10.0. and its dividend growth rate is 0.20. If Boer's investment bankers charge a flotation cost of 0.07 as a fraction of the price of a new stock issue. Question: what is Boer's cost of issuing new equity?
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
