Messman manufacturing will issue common stock to the public, Financial Management

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Messman manufacturing will issue common stock to the public

The Cost of Equity and Flotation Costs

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $2.00 per share and 6%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places.

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Financial Management: Messman manufacturing will issue common stock to the public

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Financial Management: Messman manufacturing will issue common stock to the public

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