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Problem 11-13 The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth
Problem 11-13 The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $3.00 per share and 496, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places
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