The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the

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The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the stock now sells for $40. New stock can be sold at a price of $34.00.

a. What is Iverson's percentage flotation cost?

b. What is Iverson's cost of new common stock?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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Question Posted: Apr 30, 2013 07:53 AM

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The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the

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a Computation of Iversons Percentage Flotation cost Normal stock price 1f New stock price 40 1 f ...View the full answer

Principles of Finance

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