The current market price per share of New Age Limited is Rs. 80. The dividend expected a year from now is Rs. 4 and it is expected to grow at a constant rate of 10 percent. The floatation (issue) cost for the new issue will be 8 percent. What is the cost of new equity?
1
15.43 percent
2
15.00 percent
3
5.00 percent
4
5.43 percent