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New common stocks We need to measure the cost of new common stock equity. The...

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New common stocks We need to measure the cost of new common stock equity. The firm's shares are currently selling at par, for $131 per share, and is expected to offer a dividend of $5.41 by the end of the following year. The amount of the dividend has increased steadily and five years ago, the dividend was $2.5 To attract the buyer the new common stock must be underpriced at $1.5 per share and pay a floatation cost of $4.38 per share. Calculate the company's cost of issuing new common stocks

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