Question: Quantitative Problemi Barton Industries expects next year's annual dividend, Di, to be $2.10 and it expects dividends to grow at a constant rate 9 -
Quantitative Problemi Barton Industries expects next year's annual dividend, Di, to be $2.10 and it expects dividends to grow at a constant rate 9 - 4,9% The firm's current common stock price. Po, Is $23.20. If it needs to issue new common stock, the firm will encounter a 4.2% notation cost, K. Assume that the cost of equity calculated without the notation adjustment is 12 and the cost of old common equity is 11.54. What is the flotation cost adjustment that must be added to its cost of retained earnings? Round your answer to 2 decimal places. Do not round intermediate calculations, 96 What is the cost of new common equity considering the estimate made from the three estimation methodologies? Round your answer to 2 decimal places. De not round intermediate calculations
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