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A firm expects to pay a dividend of $1.75 per share at the end of the year (D1 = $1.75) and its common stock now

A firm expects to pay a dividend of $1.75 per share at the end of the year (D1 = $1.75) and its common stock now sells for $45 per share. The firm's dividend growth rate is 7% every year. The firm plans to issue the new common stock and the pecentage flotation cost required to sell the new common stock is 10%. What is the firm's cost of new common stock, ke?

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