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can you confirm if E is rhe correct answer A firm wishes to issue new shares of its stock, which already trades in the market.
can you confirm if E is rhe correct answer
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $47, the most recent dividend was $2 per share, and the dividend is expected to grow at a rate of 7% forever. Flotation costs for this issue are expected to be 14%. What is the required rate of return (or financing cost) in this new issue? Note: when flotation costs are given as a percentage instead of in dollar terms, the denominator in the formula changes from (P-F) to P*(1-F). Enter your answer as a percentage, rounded to two decimals. So, if your answer is 0.123456, enter 12.34. Which of the following statements is not true, when describing the concept of free cash-flow? "Free cash-flow is the cash that is available after... O Paying variable costs O Paying fixed costs Paying taxes Investing in corporate projects Paying a dividend to stock holders Step by Step Solution
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