Question: Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%,

Messman Manufacturing will issue to the public for $30. The expected and the growth in dividends are $3.00 per share and 5%, respectively. If the floating cost is 2% of the issue proceeds, then what is the after-tax cost of debt? Disregard the tax shield from the amortization of flotation costs.

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