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ou were recently hired by Garrett Design, Inc. to estimate its cost of common equity. You obtained the following data: D1 = $1.75; P0 =
ou were recently hired by Garrett Design, Inc. to estimate its cost of common equity. You obtained the following data: D1 = $1.75; P0 = $41.00; gL = 6.50% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?
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