Falcon technologies is issuing new common stock flotation


Falcon Technologies is issuing new common stock. Using information below, what is Falcon’s cost of equity?

Market price of $28.

Dividends last year were $1.30 and are expected to grow at an annual rate of 7% forever.

Flotation costs will be 6% of market price.

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Financial Management: Falcon technologies is issuing new common stock flotation
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