Question
MidStrata Company considers to issue new common stock that is currently trades at $32.50 a share. MidStrata's investment bankers estimate that it will cost $2.30
MidStrata Company considers to issue new common stock that is currently trades at $32.50 a share. MidStrata's investment bankers estimate that it will cost $2.30 a share to issue new common stock. What is MidStrata's estimated cost of new common shares, if the firm's cost of retained earnings is 12.01%?
| A. | 12.25% | |
| B. | 8.50% | |
| C. | 15.00% | |
| D. | 13.02% |
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
