If the Expected Dividend Growth Rate Is Zero,then the Cost

If the expected dividend growth rate is zero,then the cost of external equity capital raised by issuing new common stock (r_e) is equal to the cost of equity capital from retaining earnings (r_s) divided by 1 minus the percentage flotation cost required to sell the new stock,(1 - F).If the expected growth rate is not zero,then the cost of external equity must be found using a different procedure.