What is the cost of external equity re

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Reference no: EM131450084

Messman Manufacturing will issue common stock to the public for $42.50. The expected dividend and growth in dividends are $2.12 per share and 5.80%, respectively. If the flotation cost is 8.95% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places. a). 10.25 b). 11.27 c). 10.82 d). 12.62 e). 11.72

Reference no: EM131450084

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