Question
Boer Inc. expects to pay a dividend 1.8 in one year, it's current stock price is 40.0. and its dividend growth rate is 0.02. If
Boer Inc. expects to pay a dividend 1.8 in one year, it's current stock price is 40.0. and its dividend growth rate is 0.02. If Boer's investment bankers charge a flotation cost of 0.05 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?
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The Handbook Of Equity Derivatives
Authors: Jack Clark Francis, William W. Toy, J. Gregg Whittaker
1st Edition
0471326038, 978-0471326038
