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steves specialties inc paid its dividend yesterday, which as 2.25. the dividend has been growing at a rate of 0.010 and is expected to continue
steves specialties inc paid its dividend yesterday, which as 2.25. the dividend has been growing at a rate of 0.010 and is expected to continue indefinitely at that rate. steves common stock is currently trading at 21.00 per share. the firms beta is 1.12. treasuries are yielding 0.030, average return on the market is 0.08. if the firms issues new common stock, it can be sold at the current market price and the flotation costs are expected to be 0.11 times the market price oer share. using the DCF approach, what is steves cost of new common equity?
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