Question: 125 points SA QUESTION 13 Afirm needs to issue some stocks for a project. It just paid a dividend of 33 per share, and the

125 points SA QUESTION 13 Afirm needs to issue some stocks for a project. It just paid a dividend of 33 per share, and the next dividend wilt be paid in exactly one year Its dividend is expected to grow at 5 forever, and current stock is trading at $50 per share. Suppose the flotation cost is 1. What is the cost of new equity? 60W 11.45 12.45

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