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What is the flotation cost adjustment? Intro Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to
What is the flotation cost adjustment?
Intro Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to grow by 2.9% every year and the current stock price is $182.6. The company is in the process of issuing new common stock, with flotation costs of 3% of the issue price Part 1 Attempt 1/10 for 10 pts. What is the cost of new common stock? Correct Cost of equity from new stock: ePo (1 - F) Di +0.029 182.6(1- 0.03) 0.0989 Attempt 3/10 for 10 pts. Part 2 What is the flotation cost adjustmentStep by Step Solution
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