The firm expects constant growth of 773 and floatation


The firm's stock price is currently selling for $10 and will pay a dividend of $2 next year. The firm expects constant growth of 7.73% and floatation costs associated with the new equity issue of 20%. What is the cost of new equity?

Solution Preview :

Prepared by a verified Expert
Business Economics: The firm expects constant growth of 773 and floatation
Reference No:- TGS02878785

Now Priced at $10 (50% Discount)

Recommended (93%)

Rated (4.5/5)