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Messman Manufacturing will issue common stock to the public for $ 4 0 . The expected dividend and the growth in dividends are $ 3

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and the growth in dividends are $3.75 per share and 5%, respectively. If the flotation cost is 15% of the issue's gross proceeds, what is the cost of external equity, re? Round your answer to two decimal places.

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