Attempts Do No Harm/1 8. Problem 10.13 (Cost of Common Equity with Flotation) scook Banyan...
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Attempts Do No Harm/1 8. Problem 10.13 (Cost of Common Equity with Flotation) scook Banyan Co.'s common stock currently sells for $49.25 per share. The growth rate is a constant 6%, and the company has an expected vidend yield of 3%. The expected long run dividend payout ratio is 2096, and the expected return on equity (ROE) is 5%. Non stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decinal places
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