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7. The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the stock now sells for $40. New stock

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7. The Iverson Company's next expected dividend, D1, is $2.16; its growth rate is 8 percent; and the stock now sells for $40. New stock can be sold at a price of $34.00. a. What is Iverson's percentage flotation cost? (2 points) b. What is Iverson's cost of new common stock? (2 points)

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