Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to grow by 2.2% every year and the current stock price is $181.5. The company is in the process of issuing new common stock, with flotation costs of 6% of the issue price.   What is the flotation cost adjustment? Use 5 decimal places for all input numbers in your calculation.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Belkin is expected to pay an annual dividend of $12.38 one year from now. Dividends are expected to grow by 2.2% every year and the current stock price is $181.5. The company is in the process of issuing new common stock, with flotation costs of 6% of the issue price.

 

What is the flotation cost adjustment? Use 5 decimal places for all input numbers in your calculation.

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