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If flotation cost are 150 percent of the issues gross

Greshak Corp. plans to issue common stock in public offering at a price of $36.00 per share. The projected dividend per share is $2.00 and it is expected to grow by 4.0 percent in the future. If flotation cost are 15.0 percent of the issues gross proceeds, what is the cost of Greshak's external equity?

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Finance Basics: If flotation cost are 150 percent of the issues gross

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