Suppose that brown-murphiesrsquo common shares sell for, Ask an Expert

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Suppose that Brown-Murphies’ common shares sell for $16.00 per share, that the firm is expected to set their next annual dividend at $0.37 per share, and that all future dividends are expected to grow by 3 percent per year, indefinitely. Assume Brown-Murphies faces a flotation cost of 11 percent on new equity issues.

What will be the flotation-adjusted cost of equity? (Round your answer to 2 decimal places.)

Cost of equity %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92348040

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