What is the firm cost of new common stock

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Reference no: EM131587073

Currently market price of Antonio Company is $40 per share. The expected dividend at the end of the coming year is $4 per share and the dividend is expected to grow at a constant rate of 6 percent per year. The Company is planning to sell new common stock which incurs flotation cost of 10 percent. What is the firm’s cost of new common stock?

Reference no: EM131587073

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