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 3 years ago
118 The Choi Company's next expected dividend, D1, is $3.18; its growth rate is 6 percent; and its stock currently sells for $36. New stock can be sold to net the firm $32.4 per share.
a. What is Choi's percentage flotation cost, F?(Answer : 10%)
b. What is Choi's cost of new common stock, Re ? ( Answer : 15.8%)
 3 years ago
118 The Choi Company's next expected dividend, D1, is $3.18; its growth rate is 6 percent; and its stock currently sells for $36. New stock can be sold to net the firm $32.4 per share. a. What is Choi's percentage flotation cost, F?(Answer : 10%) b. What is Choi's cost of new common stock, Re ? ( Answer : 15.8%)

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aama100
 3 years ago
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