cost of new common stock

7. The cost of new common stock A firm will never have to take flotation costs into account when calculating the cost of raising capital from Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a pershare dividend of $1.36 at the end of cast year The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 8.70% into the foreseeable ture. If Alpha Moore expects to incur flotation costs of 3.750% of the value of its newly raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be