Tan lotion faces a flotation cost of 12 new equity issues


Suppose the Tan Lotion common shares sell for $18 per share are expected to set their next annual dividend at $1.00 per share and that all future dvidends are expected togrow to 7% per year indefinitely. Tan Lotion faces a flotation cost of 12% new equity issues. What wil the flotation-adjusted cost of equity be?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Tan lotion faces a flotation cost of 12 new equity issues
Reference No:- TGS0602177

Expected delivery within 24 Hours