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The difference between the fotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustiment. Quantitative Problem:

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The difference between the fotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustiment. Quantitative Problem: Barton Industries expects next year's annual dividend, D4, to be 51.50 and it expects dividends to grow at a constant nite g=4.7. The firm's curtent common stock price, P0, is $20.00. If it needs to issue new common stock, the firm will encounter a 5.3% fotabon cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Do not round intermediate calculations. Round your ansher to two decimal places. What is the cost of new common equity considering the estimbte made from the three estimation methodologies? Do not round intermediate calculatons. Alound your aniner to two decimal places

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