CFIN (with MindTap Finance, 1 term (6 months) Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337407342
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 11, Problem 10PROB
Summary Introduction
Cost of new common stock is the cost incurred by the company for issue new common stock.
Calculate the cost new common stock as follows:
Flotation cost is cost incurred for issuing the common stock. Examples are underwriting fee, legal fee and registration fee.
HHA has growth rate of 5% and current price is $28 and paid a recent dividend of $2.40. Cost of the new common stock is 15%.
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CFIN (with MindTap Finance, 1 term (6 months) Printed Access Card) (MindTap Course List)
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