Calculate the cost of new common stock. (Duchess Corporation has estimated that on the average,...
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Calculate the cost of new common stock. (Duchess Corporation has estimated that on the average, new shares can be sold for $47. THE 43 per share underpricing is due to the competitive nature of the market. A second cost associated with a new issue is floating costs of $2.50 per share that would be paid to issue and sell the new shares.
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