Question
MBIs common stock was last traded at $38.00 per share. New issue of common stocks will involve flotation costs of 8%. Last year, the company
MBIs common stock was last traded at $38.00 per share. New issue of common stocks will involve flotation costs of 8%. Last year, the company paid a dividend of $2.12 per share, and future dividends are expected to grow at 6% forever. What is the cost of common stock?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
