The cost of issuing new common stock

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Reference no: EM131551257

Bouchard Company's stock sells for $20 per share, its last dividend (D0) was $1.00, its growth rate is a constant 6 percent, and the company would incur a flotation cost of 20 percent if it sold new common stock. Which of the following is the cost of issuing new common stock? (Round off the answer to two decimal places.)

12.63 percent

11.96 percent

10.24 percent

Reference no: EM131551257

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