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Italian Corporation will issue new common stock shares to raise $70,000,000. The planned dividend is $3.25 per share and is expected to increase 4.00 percent

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Italian Corporation will issue new common stock shares to raise $70,000,000. The planned dividend is $3.25 per share and is expected to increase 4.00 percent per year for the indefinite future. The market price is $70 per share and flotation cost is $5.50 per share. What is Italian Corporation's cost of capital for this common stock issue

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