What will be the cost of the newly issued common shares

Reference no: EM13276084

The firm is planning an expansion project that it desires to finance with newly issued common stock. The firm has an outstanding issue of common stock that just paid a dividend of $4.25 per share with 6% constant growth rate, which is trading for $65 per share. You have advised the firm that flotation costs will be 8% per share. What will be the cost of the newly issued common shares?

Reference no: EM13276084

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