Famas’ common stock currently trades at RM40.00 per share. It is expected to pay an annual dividend of RM2.50 per share
Posted: Wed Dec 08, 2021 5:00 am
Famas’ common stock currently trades at RM40.00 per share. It is
expected to pay an annual dividend of RM2.50 per share at the end
of the year (D1 = RM2.50) and the constant growth
rate is 6% per year.
Required:
(5
Marks)
What would be the cost of equity if they issued a new stock
which would incur an 8% flotation cost?
expected to pay an annual dividend of RM2.50 per share at the end
of the year (D1 = RM2.50) and the constant growth
rate is 6% per year.
Required:
(5
Marks)
What would be the cost of equity if they issued a new stock
which would incur an 8% flotation cost?