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Problem:

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 9% of the issue's gross proceeds,

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Question 1: What is the cost of external equity, re? Explain in detail and also show all work.

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Category:- Basic Finance
Reference No.:- M91147288

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