Issued common stock incorporating the flotation cost

Assignment Help Financial Management

Reference no: EM13943267

Barry's stocks are being sold at a current price of $50 and the last dividend paid was $4.19, and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Barry estimates that if he issues new common stock, the flotation cost will be 15 percent. What is the cost of newly issued common stock incorporating the flotation cost? (Answer must be a percentage)

Reference no: EM13943267

Questions Cloud

Cash payments—direct method : Appleton Enterprises' comparative balance sheets included inventory of $90,200 at December 31, 2013, and $70,600 at December 31, 2014. What is the amount of cash payments for inventory that Appleton will report in the Operating Activities section of ..

Description of the task the pseudo-code : Select a task a program could perform over an array of items that would be useful. Your task must include the following:

Which declaration of x is the correct one for a reference : Assuming static scoping, which declaration of X is the correct one for a reference to X in the following

External business planning competition : To develop your idea further you should consider participating in an external business planning competition.

Issued common stock incorporating the flotation cost : Barry's stocks are being sold at a current price of $50 and the last dividend paid was $4.19, and dividends are expected to grow at a constant rate of 5 percent for the foreseeable future. Barry estimates that if he issues new common stock, the flota..

What will be effect on cash flows of this sale : Suppose you sell a fixed asset for $50,000 when its book value is $60,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

Statement of cash flows assuming that direct method is used : Spencer Corp. reported accounts receivable of $28,000 on its December 31, 2013, balance sheet. On December 31, 2014, accounts receivable had decreased to $15,500. Sales for the year amounted to $60,500. What is the amount of cash collections that Spe..

Is the system currently deadlocked. is it in a safe state : is the system currently deadlocked? is it in a safe state? if it is not deadlocked and/or safe be sure to show initermediae states that lead you to that conclusion

Define gender and sexuality : Ideas and perceptions of gender and sexuality are strongly dependent on cultural factors and influences. Define gender and sexuality. What is the difference between the two? Describe the influences of culture on these aspects of human development

User Account

All Pages