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5 points 8. Ross textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for Php57.50. the firm expects

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5 points 8. Ross textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for Php57.50. the firm expects to pay a Php3.40 dividend. The stock is expected to grow at 5% per year. The stock will be underpriced by Php3 and flotation costs are at Php2.50 per share. What is the cost of equity?*

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