Suppose that brown-murphies common shares sell for 2050 per

Reference no: EM13617367

Suppose that Brown-Murphies' common shares sell for $20.50 per share, that the firm is expected to set their next annual dividend at $0.61 per share, and that all future dividends are expected to grow by 4 percent per year, indefinitely. Assume Brown-Murphies faces a flotation cost of 11 percent on new equity issues.

What will be the flotation-adjusted cost of equity?

Reference no: EM13617367

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