What is the cost of external equity

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Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $2.25 per share and 4%, respectively. If the flotation cost is 13% of the issue's gross proceeds, what is the cost of external equity, re?

Reference no: EM13272518

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What is the cost of external equity : Messman Manufacturing will issue common stock to the public for $50. The expected dividend and growth in dividends are $2.25 per share and 4%, respectively. If the flotation cost is 13% of the issue's gross proceeds, what is the cost of external e..

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