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( 5 points ) The common stock of the company has the market price of $ 3 6 per share and expected dividend of $

(5 points) The common stock of the company has the market price of $36 per share and
expected dividend of $3 per share with 5% annual growth. The standard tax rate for the
company is 25%.
A. Calculate before tax cost of common stock.
B. Calculate the after tax cost of common stock.
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