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The current price of xaviers share is 5554 floatation cost

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The xavier construction ,the dynamic growth firm which pays no dividend,anticipates a long run level of future earnings of 7 per share. The current price of xavier's share is 55.54, floatation cost for the sale of equity would average about 10% of the price of the share. What is the cost of new equity capital to xavier?

Reference no: EM13479594

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