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part b please. show work 6. Your firm is issuing new equity for a project's funding. The common stock will be priced at $165 per
part b please. show work
6. Your firm is issuing new equity for a project's funding. The common stock will be priced at $165 per share, and it will pay a $0.95 dividend per share. Dividends are expected to grow by 15% indefinitely. Goldman Sachs will charge the firm an 20% flotation fee to prepare the stock issuance. The firm plans to issue five million shares of stock. a. How much will the firm make per share on the stock issuance? b. How much will Goldman Sachs make in total off the stock issuance? c. What is the cost of issuing new equity Step by Step Solution
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