What will be the flotation adjusted cost of equity

Reference no: EM13263458

Suppose that Tan Lin escommon stock sell for $20 per share andare expected to sell their next annual dividend for $1.00 per share and that all future dividends are expected to grow by 5% per year indefinitely. If Tan Lines faces a flotationcot of 10% on new equity issues. What will be the flotation adjusted cost of equity?

Reference no: EM13263458

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