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The required rate of return demanded by common stock investors (based upon CAPM) is 16.82%. XYZ Company is going to issue new shares to finance
The required rate of return demanded by common stock investors (based upon CAPM) is 16.82%. XYZ Company is going to issue new shares to finance a $100 million expansion. The investment bankers are charging a flotation cost of 4.80% for their efforts. What is the required rate of return for these new funds when the floatation costs are factored in? State in percentage terms without the percent sign symbol and round to the second decimal place. (Thus, 12.98756% would be written as 12.99 to be correct)
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