Calculate the firm cost of common equity from new shares

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Reference no: EM132072688

In order to meet their capital needs for next year a firm will need to sell some additional shares of their class A common stock. flotation costs are estimated to be 2.00 per share. Class a shares currently trade at 20.00 and most recently paid a divident of .75 per share. the firm expects to grow at a constat 6.4% for the foreseeable future. Calculate the firm's cost of common equity from new shares.

Reference no: EM132072688

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