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What is the cost of new common stock

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Question - USWAG Company is preparing to issue common stock. The company is attempting to estimate the cost of common stock. The company paid dividend of P5.25. The current market price reflects a 15% expected annual return on investors. Dividends are expected to grow at a constant rate of 10% per year. Flotation costs on the new issue will be P3.75 per share. What is the cost of new common stock?

Reference no: EM133183273

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