2020 Mock B 下午 63题
A company intends to issue new common stock with floatation costs of 5.0% per share. The expected dividend next year is $0.32, and the dividend growth rate is expected to be 10% in perpetuity. Assuming the shares are issued at a price of $14.69, the cost (%) of external equity for the firm is closest to:
- 12.2.
- 12.5.
- 12.3.
C is correct.
