Question
Your company's stock sells for $45 per share, the last dividend (D0) was $1.3, its growth rate is a constant4 percent, and the company will
Your company's stock sells for $45 per share, the last dividend (D0) was $1.3, its growth rate is a constant4 percent, and the company will incur a flotation cost of 13 percent if it sells new common stock.What is the firm's cost of new equity, re?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
