Question: Practice questions : A (6) Coleman estimates that if it issues new common stock, the flotation cost will be 15%. Coleman incorporates the flotation costs

Practice questions : A

(6) Coleman estimates that if it issues new common stock, the flotation cost will be 15%. Coleman incorporates the flotation costs into the DCF approach. What is the estimated cost of newly issued common stock, considering the flotation cost? (7) What is Coleman's overall, or weighted average, cost of capital (WACC)? Ignore flotation costs

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