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Expected cash dividends are $ 4 . 0 0 , the dividend yield is 5 % , flotation costs are 7 % of price, and

Expected cash dividends are $4.00, the dividend yield is 5%, flotation costs are 7% of price, and the growth rate is 5%. Compute the approximate cost of new common stock.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Multiple Choice
12.48%
11.38%
10.38%
10.13%

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