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2. Wellstock Corp. will issue new common stock. The companys existing common stock is selling for $26.50 per share and offered $2.25 per share in

2. Wellstock Corp. will issue new common stock. The companys existing common stock is selling for $26.50 per share and offered $2.25 per share in dividends at the end of last year. Dividends are expected to grow at an annual rate of 6% indefinitely. New issues of common stock will incur 8% of the current market price. What is the cost of the companys new common stock?

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