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As the assistant to the CFO of ABC Inc., you must estimate its cost of common equity. You have been provided with the following data:

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As the assistant to the CFO of ABC Inc., you must estimate its cost of common equity. You have been provided with the following data: D1 = $0.80; PO = $22.50; Flotation cost = 5%; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from issuing new stock? A 10.11% 11.46% C 11.84% 11.21% E 10.44%

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