Ballack cos common stock currently sells for 3700 per share


Calculate the answer of the given questions

Question- Ballack Co.'s common stock currently sells for $37.00 per share. The growth rate is a constant 9%, and the company has an expected dividend yield of 4%. The expected long-run dividend payout ratio is 25%, and the expected return on equity (ROE) is 12%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred.

Part 1- What would be the cost of new equity?

I want experts assist to determine the cost of new equity and round your answer to two decimal places.

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Other Subject: Ballack cos common stock currently sells for 3700 per share
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