Gs Co. has insufficient retained earnings to fund capital expenditures and decided to issue new common shares. Gs Co.’s share currently has a price of P33 per share and has a projected year-end dividend of P6 per share. The dividend is expected to grow at 2% annually forever. The cost of new equity is determined at 22%. What is the floatation cost in peso?
Gs Co. has insufficient retained earnings to fund capital expenditures and decided to issue new common shares. Gs Co.’s share currently has a price of P33 per share and has a projected year-end dividend of P6 per share. The dividend is expected to grow at 2% annually forever. The cost of new equity is determined at 22%. What is the floatation cost in peso?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Gs Co. has insufficient
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