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e the dividend growth model to determine the required rate of return for equity. Your firm intends to issue new common stock. Your investment bankers

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e the dividend growth model to determine the required rate of return for equity. Your firm intends to issue new common stock. Your investment bankers have termined that the stock should be offered at a price of $45.00 per share and that you should anticipate paying a dividend of $1.50 in one year. If you anticipate a nstant growth in dividends of 3.00% per year and the investment banking firm will take 5.00% per share as flotation costs, what is the required rate of return for this sue of new common stock? A. 6.51% B. 6.83% C. 7.08% D. There is not enough information to answer this

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