Question: You have been provided with the following data: D 1 = $1.30; P 0 = $42.50; and g = 7.00% (constant). If your company is

You have been provided with the following data: D1 = $1.30; P0 = $42.50; and g = 7.00% (constant).

If your company is going to issue new equity, it will incur an additional 6% flotation costs what is the cost of issuing new equity?

Cost of new Equity?

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