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(4) Company BW has 10,000,000 shares outstanding and the market price is $12.27 per share. Annual dividend just paid was $0.75 per share and investors

(4) Company BW has 10,000,000 shares outstanding and the market price is $12.27 per share. Annual dividend just paid was $0.75 per share and investors believe future dividends will be increasing by 7% annually. What is the cost of common stocks? [4 points]

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