Wheel has just paid a dividend of 250 per share the


Wheel has just paid a dividend of $2.50 per share. The dividends are expected to grow at a constant rate of six percent per year forever. If the stock is currently selling for $50 per share with a 10% flotation cost, what is the cost of new equity for the firm?

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Finance Basics: Wheel has just paid a dividend of 250 per share the
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