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Question 7 5 pts Weaver Brothers expects to earn $ 3 . 5 0 per share ( E 1 ) , and has an expected

Question 7
5 pts
Weaver Brothers expects to earn $3.50 per share (E1), and has an expected dividend payout ratio of 60%. Its expected constant dividend growth rate is 4.2%, and its common stock currently sells for $30 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?
Your answer should be between 10.15 and 16.90, rounded to 2 decimal places, with no special characters.
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