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DupT Corporation plans to issue a common stock issue to finance its next capital investment project. The market price of the corporation's shares is $
DupT Corporation plans to issue a common stock issue to finance its next capital investment project. The market price of the corporation's shares is $ 75 per share. A dividend of $ 5 per share is expected at the end of the year. The corporation has had an average annual growth of 6%. The issue cost is $ 2.50 per share. Determine the cost of equity capital using the Gordon growth model.
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