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A company is planning to issue new equity in order to raise capital. The current share price is $45 and the company is planning to
A company is planning to issue new equity in order to raise capital. The current share price is $45 and the company is planning to pay a dividend of $2.50 and grow the dividend at a constant rate of 6% per year, indefinitely. If flotation costs are $3 per share, what is the cost of common equity? (Round to the nearest hundredth: .00)
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