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Business, 06.07.2021 21:30 LittleNerd2852

The required rate of return demanded by common stock investors (based upon CAPM) is 12.60%. XYZ Company is going to issue new shares to finance a $100 million expansion. The investment bankers are charging a flotation cost of 2.60% for their efforts. What is the required rate of return for these new funds when the floatation costs are factored in

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