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Jarett & Sons's common stock currently trades at $29.00 a share. It is expected to pay an annual dividend of $1.00 a share at the
Jarett & Sons's common stock currently trades at $29.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D1 = $1.00), and the constant growth rate is 7% a year. If the company issued new stock, it would incur a 13% flotation cost. What would be the cost of equity from new stock?
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