What is the floation-adjusted cost of new common stock

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Reference no: EM13885272

Wooten Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.03 at the end of next year. the company's growth rate is expected to remain constant at 9.4%. If floatation cost represent 5.% of funds raised, what is the floation-adjusted cost of new common stock?

a. 12.6%

b. 15.5%

c. 13.4%

d. 15.8%

Reference no: EM13885272

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