What is the flotation cost adjustment

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Reference no: EM132011691

Barton Industries expects next year's annual dividend, D1, to be $2.30 and it expects dividends to grow at a constant rate gL = 5%. The firm's current common stock price, P0, is $23.50. If it needs to issue new common stock, the firm will encounter a 4.6% flotation cost, F. What is the flotation cost adjustment that must be added to its cost of retained earnings? Round your answer to 2 decimal places. Do not round intermediate calculations.

Reference no: EM132011691

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