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If flotation costs are 100 of the issues gross proceeds

ABC plans to issue common stock in a public offering at a price of $120 per share. The projected dividend per-share is eight dollars and it is expected to grow by 4% in the future. If flotation costs are 10.0% of the issues gross proceeds, what is the cost of external equity?

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Finance Basics: If flotation costs are 100 of the issues gross proceeds

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