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Banyan Co.'s common stock currently sells for $43.00 per share. The growth rate is a constant 8.4%, and the company has an expected dividend yield of 2%.The expected long-run dividend payout ratio is 30%, and the expected return on equity (ROE) is 12%. New stock cn be sold to he public at the current price, but a floation cost of 5% would be incurred . What would be the cost of the new equity? Round answer to two decimal.

Financial Management, Finance

  • Category:- Financial Management
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