Fedland Inc. will issue new common stock to finance an expansion. The existing common stock just paid
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Fedland Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $6.80 dividend, with dividends expected to grow at a constant rate of 4% indefinitely. The stock sells for $40.00 and flotation expenses of 12% of the selling price will be incurred on new shares. What is the cost of new common?
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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