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8. Alfa Corporation issued new common stock at a market price of 30 Lira. Dividends last year were 2 Lira and are expected to grow

8. Alfa Corporation issued new common stock at a market price of 30 Lira. Dividends last year were 2 Lira and are expected to grow at an annual rate of 3%. Flotation costs will be 4% of market price. A. What is Alfa's cost of equity for the new issue? (4p) B. What is investors required rate of return? (4p)

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