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Loorious Corp. wants to raise new common stock to finance an expansion. The corporations existing common stock is expected to pay $8.50 per share in

Loorious Corp. wants to raise new common stock to finance an expansion. The corporations existing common stock is expected to pay $8.50 per share in dividends next year, which is expected to grow at a constant rate of 4% indefinitely. The stock currently sells for $64.00. Flotation expenses of 18% of the selling price will be incurred on any new shares issued. What is the corporations cost of new commonstock?

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