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Problem 21-02 Sun Instruments expects to issue new stock at $33 a share with estimated flotation costs of 9 percent of the market price. The
Problem 21-02 Sun Instruments expects to issue new stock at $33 a share with estimated flotation costs of 9 percent of the market price. The company currently pays a $1.70 cash dividend and has a 5 percent growth rate. What are the costs of retained earnings and new common stock? Round your answers to two decimal places. Costs of retained earnings: 10.94 % Cost of new common stock: %
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