What is the value of the cost of new equity

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Jaya Berhad has an anticipated dividend next year of RM1.90 per share. Its growth rate is 10% a year, and its existing equity share is selling for RM17 per share. New shares can be sold to the public at the same price. The company must pay its investment bankers 3% of the shares selling price. What is the value of the cost of new equity? Briefly explain your answer.

Reference no: EM132596045

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