What is the cost of new equity for this company taking into


A company expects to pay a dividend of $1.20 next year, dividends are expected to grow at 3%, and the company's shares are priced at $48 per share. Issuing new shares would involve flotation costs of 10.0%. What is the cost of new equity for this company, taking into account flotation costs?

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Finance Basics: What is the cost of new equity for this company taking into
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