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( Cost of equity ) Brille Corporation is issuing new common stock at a market price of $ 26 26 . Dividends last year were

(Cost of equity) Brille Corporation is issuing new common stock at a market price of $26

26. Dividends last year were $ 1.75

$1.75 and are expected to grow at an annual rate of 9

9 percent forever. Flotation costs will be 7

7 percent of market price. What is Brille's cost of equity?

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