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Flotation-adjusted cost of equity

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Flotation Cost Suppose that Brown-Murphies" common shares sell for $19.50 per share, that the firm is expected to set their next annual dividend at $0.57 per share, and that all future dividends are expected to grow by 4 percent per year, indefinitely. If Brown-Murphies faces a flotation cost of 13 percent on new equity issues, what will be the flotation-adjusted cost of equity? (LG11-8). pg 356-357.

Reference no: EM133120241

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