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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
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11.53%
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9.43%
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9.18%
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10.43%
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