Question
What is the cost of new equity assuming the firm's stock price is currently selling for $10 and will pay a dividend of $2 next
What is the cost of new equity assuming the firm's stock price is currently selling for $10 and will pay a dividend of $2 next year. The firm expects constant growth of 9.47% and floatation costs associated with the new equity issue of 20%. Write your answer as a decimal.
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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