11-8 The Choi Company's next expected dividend, D1, is $3.18; its growth rate is 6 percent; and its stock currently sells for $36. New stock can be sold to net the firm $32.4 per share.
AWhat is Choi's percentage flotation cost, F?
BWhat is Choi's cost of new common stock, Re ?
AWhat is Choi's percentage flotation cost, F?
BWhat is Choi's cost of new common stock, Re ?