The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the...
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Finance
The Cost of Equity and Flotation Costs
Messman Manufacturing will issue common stock to the public for $45. The expected dividend and the growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 8% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places.
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