What is the cost of new equity for this company

Assignment Help Finance Basics

Reference no: EM13282438

A company expects to pay a dividend of $1.20 next year, dividends are expected to grow at 3%, and the company's shares are priced at $48 per share. Issuing new shares would involve flotation costs of 10.0%. What is the cost of new equity for this company, taking into account flotation costs?

Reference no: EM13282438

Questions Cloud

What class of compounds is this characteristic : what class of compounds is this characteristic and why and how can the relative scarcity of drugs that fluorescence be an advantage in some instances and a disadvantage in others?

How high would the effective yield on a taxable bond : How high would the effective yield on a taxable bond have to rise before the investor would prefer the taxable bond to the 6% tax-free bond?

How long will your friend be driving before he meets you : You are eating lunch at your favorite cafe and your friend calls and says he wants to meet you. He is calling from a city 175 miles away and wants to meet you somewhere between the two locations. how long will your friend be driving before he meets..

Find the launch speed of a projectile : What is the launch speed of a projectile that rises vertically above the Earth to an altitude equal to four times the Earth's radius before coming to rest momentarily

What is the cost of new equity for this company : What is the cost of new equity for this company, taking into account flotation costs?

What is the days sales in receivables : Billings, Inc has net income of $161,000, a profit margin o 7.6 percent, and an accounts receivable balance of $127,100. Assume that 66 percent of sales are on credit. What is the days' sales in receivables?

At what height from the ground will two objects first meet : A small object begins a free-fall from a height of H = 82.5 m at t0 = 0 s. At what height from the ground will the two objects first meet

What is the electric flux through the wall : A vertical wall (5.4 m 2.4 m) in a house faces due east. A uniform electric field has a magnitude of 164 N/C. What is the electric flux through the wall

Determine the work done in carrying a charge in two points : Determine the work done in carrying a charge -2x10-6C from P1 = (2, 1, -1) to point P2 = (8, 2, -1) (both in cartesians) in the field E = yax + xay (all in SI units) by integrating QE.dL along the straight line connecting the two points. Note: E i..

User Account

All Pages