The current market price per share of New Age Limited is Rs. 80. The dividend expected a
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Question:
The current market price per share of New Age Limited is Rs. 80. The dividend expected a year from now is Rs. 4 and it is expected to grow at a constant rate of 10 percent. The floatation (issue) cost for the new issue will be 8 percent. What is the cost of new equity?
1) 15.43 percent
2) 15.00 percent
3) 5.00 percent
4) 5.43 percent
Related Book For
Corporate Finance and Investment decisions and strategies
ISBN: 978-1292064062
8th edition
Authors: Richard Pike, Bill Neale, Philip Linsley
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