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What is the cost of external equity

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Reference no: EM132963053

Question - Messman Manufacturing will issue common stock to the public for $30. The expected dividend one year from today is $3.00 per share, and the expected earnings is $6.00 per share. ROE is expected to be 12%. If the flotation cost is 10% of the issue's gross proceeds, what is the cost of external equity?

Reference no: EM132963053

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