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If the company issues new common stock, it will sell for $50 per share with a floatation cost

17 / 01 / 2019 Research Papers

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If the company issues new common stock, it will sell for $50 per share with a floatation cost of… 1 answer below » If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure? Sep 24 2015 08:48 AM


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