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National Co. has insufficient retained earnings to fund capital expenditures and decided to issue new common shares. National Co.'s share currently has a price
National Co. has insufficient retained earnings to fund capital expenditures and decided to issue new common shares. National Co.'s share currently has a price of P33 per share and has a projected year-end dividend of P6 per share. The dividend is expected to grow at 2% annually forever. The cost of new equity is determined at 22%. What is the floatation cost in peso?
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To calculate the flotation cost we need to consider the cost of issuing new equity and the growth ra...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
