Calculate the flotation cost as stated in percentage terms

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Problem 1: Frazier Enterprises has a cost of new equity of 12.5%. They paid a dividend last year of $3 and expect dividends to grow at a constant rate of 5%. Their stock is selling for $50 per share. Calculate the flotation cost, as stated in percentage terms, associated with issuing new equity.

Reference no: EM132913952

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