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Calculate the cost of new common stock issue

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Reference no: EM132911430

Problem - Zegha Technologies Company's common stock currently sells for Br. 46 per share. The company's most recent dividends was Br. 4, and it expects a dividend of Br. 4.28 to be paid at the end of the current year. The firm also expects to incur a flotation cost of Br. 5 to sell each share of common stock issue. Calculate the cost of new common stock issue and retained earnings.

Reference no: EM132911430

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