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Expected cash dividends are $3.00, the dividend yield is 5%, flotation costs are 8% of price, and the growth rate is 4%. Compute the approximate

Expected cash dividends are $3.00, the dividend yield is 5%, flotation costs are 8% of price, and the growth rate is 4%. Compute the approximate cost of new common stock. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Multiple Choice

  • 11.53%

  • 9.43%

  • 9.18%

  • 10.43%

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