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A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $43, the most recent
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $43, the most recent dividend was $2 per share, and the dividend is expected to grow at a rate of 8% forever. Flotation costs for this issue are expected to be 13%. What is the required rate of return (or financing cost) in this new issue?
Enter your answer as a percentage, rounded to two decimals.
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