Intro

Pfizer is expected to pay an annual dividend of $$1\mathrm{.}85$ one year from now. Dividends are expected to grow by $3\mathrm{.}7\%$

every year and the current stock price is $$249\mathrm{.}2.$ The company is in the process of issuing new common stock,

with flotation costs of $$2$ per share.

Part $1$

What is the cost of new common stock?