Suppose that Brown-Murphies' common shares sell for $18.00 per share, that the firm is expected...
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Suppose that Brown-Murphies' common shares sell for $18.00 per share, that the firm is expected to set their next annual dividend at $0.45 per share, and that all future dividends are expected to grow by 6 percent per year, indefinitely. Assume Brown-Murphies faces a floatation cost of 15 percent on new equity issues. What will be the floatation-adjusted cost of equity? (Round answer to 2 decimal places).
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