... 67,346,938.78. White sink has no preferred equity. The company has constant ratio payout 40 % and 1,000,000 outstanding shares if the common stock is currently selling for 73.75 per share and the company is expected to grow at a constant rate. what is the cost of external equity? Floatation cost is 5% of the price and the marginal tax rate is 40%? round to the nearest .01
5.5/73.75(1-.05)+
Answer is a. 12.63 b. 15.5 c 20.6 d. 21.06