Multiple Choice
If a firm issuing additional common equity can estimate the return investors require on its stock (ke) at 12% and knows that flotation costs are about 18%, its component cost of equity capital for the new funds will be:
A) 30.0%
B) 14.2%
C) 13.6%
D) 14.6%
Correct Answer:
Verified
Correct Answer:
Verified
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