What would be cost of equity from new common stock

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Reference no: EM131949742

Sugar producing co expects to earn $3 per share during the current year, its expected dividend payout ratio is 50%, its expected constant dividend growth rate is 6.0% and its common stock currently sells for $30 per share. New stock can be sold to the public at the current price, but a floatation cost of 10% would be incurred. What would be the cost of equity from new common stock?

Reference no: EM131949742

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