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Bank of America's stock currently trades at & 8 0 per share, the stock expects to pay an $ 8 dividend this year and the

Bank of America's stock currently trades at &

80

per share, the stock expects to pay an $

8

dividend this year and the stock has a perpetual growth rate of

5 % .

What is the cost of the new common equity if the company pays

7 %

in flotation cost?

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