If the flotation cost is 9 of the issues gross proceeds
MM will issue common stock to the public for $ 28. The expected dividend and the growth in dividends are $ 2.50 per share and 5% respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equity?
Now Priced at $10 (50% Discount)
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mm will issue common stock to the public for 28 the expected dividend and the growth in dividends are 250 per share
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