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Adventure Outfitter Corp. can sell common stock for $27 per share. Administrative or flotation costs associated with selling the stock amount to $2.70 per share.

Adventure Outfitter Corp. can sell common stock for $27 per share. Administrative or flotation costs associated with selling the stock amount to $2.70 per share. The company expects to pay a $2 dividend next year. The growth rate for the firm is 8%. What is the cost of capital if new common shares are issued?

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