What wil the flotation-adjusted cost of equity be

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Suppose the Tan Lotion common shares sell for $18 per share are expected to set their next annual dividend at $1.00 per share and that all future dvidends are expected togrow to 7% per year indefinitely. Tan Lotion faces a flotation cost of 12% new equity issues. What wil the flotation-adjusted cost of equity be?

Reference no: EM13263461

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