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Assume that you are a consultant to Bell Inc., and you have been provided with the following data: D0 = $0.67; P0 = $47.50; and

Assume that you are a consultant to Bell Inc., and you have been provided with the following data: D0 = $0.67; P0 = $47.50; and g = 8.00% (constant). What is the cost of equity from retained earnings? The flotation cost is $4 per share. What is the cost of new common stock?

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