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A company has common stock that can be sold for $50.67 per share. The stock paid a dividend at the end of last year of
A company has common stock that can be sold for $50.67 per share. The stock paid a dividend at the end of last year of $3.93. Dividends are expected to grow at an annual rate of 5% indefinitely. Flotation costs associated with the sale of stock equal $2.06 per share. What is the corporations cost of external equity?
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