What is the net proceed of the stock issue

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Reference no: EM132556120

MACS plans to issue common stock to the public at $80. The last paid dividend was $3 per share (D0=$3). Dividend growth rate is 5%.

Question 1) If floatation cost of the stock issuance is 10%, what's the net proceed of the stock issue?

Question 2) What's cost of external equity?

Reference no: EM132556120

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