Calculate the cost of new common stock issue

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Zegha Technologies Company's common stock currently sells for $46 per share.

The company's most recent dividends was $4, and it expects a dividend of $4.28 to be paid at the end of the current year. The firm also expects to incur a flotation cost of $5 to sell each share of common stock issue.

Required:

Question 1: Calculate the cost of new common stock issue and retained earnings.

Reference no: EM132538808

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