Solution-Emphyrio component cost of a new equity issue

Emphyrio component cost of a new equity issue

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Reference no: EM132013404

Emphyrio Inc. wishes to issue new stock to finance an aggressive expansion. Lord investment bank charges a flotation cost of 0.13 as a fraction of each stock sold. Emphyrio's current stock price is 62, and it expects to pay a dividend of 0.25 at the end of the year. What is Emphyrio's component cost of a new equity issue?

Reference no: EM132013404

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Emphyrio component cost of a new equity issue

Reference no: EM132013404

Reference no: EM132013404

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