What is boer cost of issuing new equity

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Problem: Boer Inc. expects to pay a dividend 1.1 in one year, it's current stock price is 25.0. and its dividend growth rate is 0.11.

Required:

If Boer's investment bankers charge a flotation cost of 0.12 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity? Please describe your solutions.

Reference no: EM132419476

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