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What the cost of equity raised by selling new common stock

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Question - You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: Dividend at the end of the year D1 = $1.68; The stock is currently trading at a price of $42.50, and the dividends are expected to grow at a growth rate of 2% (constant); The flotation costs for issuing the shares of common stock is 5.00% of the proceeds. What the cost of equity raised by selling new common stock?

Reference no: EM133006005

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