The cost of equity and flotation costs

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Reference no: EM13919473

The Cost of Equity and Flotation Costs

Messman Manufacturing will issue common stock to the public for $25. The expected dividend and growth in dividends are $3.50 per share and 6%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places.

Reference no: EM13919473

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The cost of equity and flotation costs : Messman Manufacturing will issue common stock to the public for $25. The expected dividend and growth in dividends are $3.50 per share and 6%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equit..

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