Boer Inc. expects to pay a dividend 1.2 in one year
Boer Inc. expects to pay a dividend 1.2 in one year, it’s current
stock price is 10.0. and its dividend growth rate is 0.20. If Boer’s investment bankers charge a flotation cost of 0.07 as a fraction of the price of a new stock issue. Question: what is Boer’s cost of issuing new equity?