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Cost of New Common Stock, re: The flotation cost of issuing new common stock, F, is 14% of the issue price. According to the previously
Cost of New Common Stock, re: The flotation cost of issuing new common stock, F, is 14% of the issue price. According to the previously provided information on Allied's outstanding common stock, estimate the cost of new common stock using the DCF approach. According to the DCF approach cost of new common stock calculated above, (1) figure out the flotation cost adjustment for new common stock, and then (2) considering the cost of retained earnings from all three approaches, adjust for this flotation cost. What is the cost of new common stock? Cost of New Common Stock, re: The flotation cost of issuing new common stock, F, is 14% of the issue price. According to the previously provided information on Allied's outstanding common stock, estimate the cost of new common stock using the DCF approach. According to the DCF approach cost of new common stock calculated above, (1) figure out the flotation cost adjustment for new common stock, and then (2) considering the cost of retained earnings from all three approaches, adjust for this flotation cost. What is the cost of new common stock
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