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Ch. 11: Halo Hot Air Balloons is expected to grow at 5 percent forever. Its common stock is currently selling for $28 per share, and

Ch. 11: Halo Hot Air Balloons is expected to grow at 5 percent forever. Its common stock is currently selling for $28 per share, and the most recent dividend paid to common stockholders was $2.40 per share. If Halos cost of new common equity is 15 percent, what is the flotation cost charged by its investment banker?

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