A stock is trading for 43 and just paid a dividend of 10


A stock is trading for 43, and just paid a dividend of 1.0 which is expected to grow at a fraction 0.18 per year.

If Goldman Sacs charges a fraction 0.18 as a flotation cost, what is the required rate of return on the new stock issued?

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Financial Management: A stock is trading for 43 and just paid a dividend of 10
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