Multiple Choice
If the company plans to pay a dividend of $4 per share next year, and the price of the stock is $45, the growth rate is projected as 7%, and the flotation costs are 6% of the issue price. Calculate the cost of new equity.
A) 1.65%
B) 0.165%
C) 16%
D) 16.5%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q39: Which of the following methods would NOT
Q40: Company XYZ purchased some machinery and gave
Q41: Business risk is best measured after the
Q42: Your grandmother wishes to have a steady
Q43: After tax cost of debt can best
Q45: Use the following information to answer the
Q46: Use the following information to answer the
Q47: When we compare the risk of two
Q48: What is the present value of an
Q49: Use the following information to answer the