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Alcoa is prepared to issue new stocks at a price of $45. the new stocks will pay a dividend of $3.40 next year and dividends

Alcoa is prepared to issue new stocks at a price of $45. the new stocks will pay a dividend of $3.40 next year and dividends are expected to increase by 2.00% thereafter. what is the cost of equity raised by new stock, if the flotation costs are 7%?

10.12%

10.42%

9.71%

9.41%

9.51%

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