Banyan Co.'s common stock currently sells for $52.75 per share. The growth rate is a constant...
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Banyan Co.'s common stock currently sells for $52.75 per share. The growth rate is a constant 7%, and the company has an expected dividend yield of 3%. The expected long-run dividend payout ratio is 30%, and the expected return on equity (ROE) is 10.0%. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places. 10.89 % Banyan Co.'s common stock currently sells for $52.75 per share. The growth rate is a constant 7%, and the company has an expected dividend yield of 3%. The expected long-run dividend payout ratio is 30%, and the expected return on equity (ROE) is 10.0%. New stock can be sold to the public at the current price, but a flotation cost of 15% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places. 10.89 %
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