Question: need some help solving this step by step without excel thank you! The ordinary shares of ABC Company are currently trading at $6. A new

need some help solving this step by step without excel thank you!

The ordinary shares of ABC Company are currently trading at $6. A new share would be made at an offer price of $5.90. Issue costs are expected to be 4% of the proceeds of the issue. The last dividend was $0.60 and the next dividend is due a year from now. The estimated growth rate is 4% p.a. What is ABC Company's after tax cost of an ordinary share issue is: Select one: A. 15% B. 13% C. 16% D. 14%

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