Question: PLEASE EXPLAIN THE FORMULA AND SOLVE. THANK YOU A stock is trading for 44, and just paid a dividend of 1.5 which is expected to

PLEASE EXPLAIN THE FORMULA AND SOLVE. THANK YOU

A stock is trading for 44, and just paid a dividend of 1.5 which is expected to grow at a fraction 0.04 per year.If Goldman Sacs charges a fraction 0.10 as a flotation cost, what is the required rate of return on a new stock issue?

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