1. Boer Inc. expects to pay a dividend 1.4 in one year, it's current stock price is 15.0. and its dividend growth rate is -0.03. If Boer's investment bankers charge a flotation cost of 0.07 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?
2. Hoffman Corporation is currently taking for 290 and has 42,000 shares outstanding. If Hoffman does a 2 for one stock split, what should the new stock price be?
3. What are te various forms of business organization? what are the advantages and disadvantages of each?