(Answered) Xyz inc will issue new common stock to finance an expansion

Statistics

XYZ Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $2.50 dividend, and dividends are expected to grow at a constant rate of 6% indefinitely. The stock sells for $32, and flotation expenses of 6% of the selling price will be incurred on new shares. What is the cost of internal equity?

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