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Patrick-Felix Musasa just paid a $2.50 per share dividend. The dividend is expected to grow at a constant rate of 7% per year. The stock

Patrick-Felix Musasa just paid a $2.50 per share dividend. The dividend is expected to grow at a constant rate of 7% per year. The stock currently sells for $42 a share. If the company issues additional stock, it must pay its investment banker a flotation cost of $1.5 per share. What is the cost of external equity, re?

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