Cost of new equity assuming the firms stock price

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Reference no: EM131451480

What is the cost of new equity assuming the firm's stock price is currently selling for $10 and will pay a dividend of $2 next year. The firm expects constant growth of 7.62% and floatation costs associated with the new equity issue of 20%. Write your answer as a decimal.

Reference no: EM131451480

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Cost of new equity assuming the firms stock price : What is the cost of new equity assuming the firm's stock price is currently selling for $10 and will pay a dividend of $2 next year.

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