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RBD Co wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.50

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RBD Co wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.50 per share, and the current price of its common stock is $30 per share. The expected growth rate is 8 percent. Compute the cost of retained earnings (Ke). If a $2 flotation cost is involved, compute the cost of new common stock (Kn). (Do not round intermediate calculations. Round the final answer to 2 decimal places.). 1) 14%,14.93% 2) 14.5%,14.93% 3) 15%,15.93% 4) 13%,14.93% 5) 13%,13.93%

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