Cost of issuing new equity

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Question 1: Boer Inc. expects to pay a dividend 1.9 in one year, it's current stock price is 45.0. and its dividend growth rate is 0.18. If Boer's investment bankers charge a flotation cost of 0.12 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?

Question 2: Murphy Inc. preferred stock currently pays a dividend of 11 per year and has a yield of 0.12. What is the current price of Murphy's preferred stock?

Reference no: EM131960742

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