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Neptune Corporation has a marginal tax rate of 21%. The firm recently paid a cash dividend of $3.00 to its common stockholders. Earnings and dividends

Neptune Corporation has a marginal tax rate of 21%. The firm recently paid a cash dividend of $3.00 to its common stockholders. Earnings and dividends are expected to grow at 4% per year for the foreseeable future. If the firm issues new common stock, the shares should sell for $58 each. Flotation costs will amount to $3.00 per share. What would be the firm's cost of external equity?

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