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Intro Tesla is expected to pay an annual dividend of $2.38 one year from now. Dividends are expected to grow by 3% every year and

Intro

Tesla is expected to pay an annual dividend of $2.38 one year from now. Dividends are expected to grow by 3% every year and the current stock price is $183. Tesla is in the process of issuing new common stock, with flotation costs of 7% of the issue price.

Attempt 1/5 for 10 pts.

Part 1

What is the cost of new common stock?

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