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Intro Pfizer is expected to pay an annual dividend of $1.85 one year from now. Dividends are expected to grow by 2.7% every year and

Intro

Pfizer is expected to pay an annual dividend of $1.85 one year from now. Dividends are expected to grow by 2.7% every year and the current stock price is $247.5. The company is in the process of issuing new common stock, with flotation costs of $2.4 per share.

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What is the cost of new common stock?

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