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Your firm is issuing new equity to fund a project that will hopefully increase firm value. The firm plans to issue 250,000 shares of stock.
Your firm is issuing new equity to fund a project that will hopefully increase firm value. The firm plans to issue 250,000 shares of stock. Th $1.10 dividend per share. Dividends are expected to grow by 5% indefinitely. JP Morgan will charge the firm 5% to prepare the issuance. A. How much will the firm receive per share on the stock offering? B. How much will the investment bank receive in total off the stock offering? C. What is the required return on the equity issuance
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