In early 2018, the Alfa Corporation issued new common stock at a market price of ($30.) Dividends

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In early 2018, the Alfa Corporation issued new common stock at a market price of \($30.\) Dividends last year were \($2\) and are expected to grow at an annual rate of 3 percent forever. Flotation costs will be 4 percent of market price. What is Alfa’s cost of equity for the new issue?

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Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

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