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Suppose Google Corp is issuing new common stock at a market price of $13. The company gave $0.86 dividend last year and expects it to
Suppose Google Corp is issuing new common stock at a market price of $13. The company gave $0.86 dividend last year and expects it to grow at an annual rate of 0.7% in the foreseeable future. If the flotation costs is expected to be 0.9% of market price of the stock then, what is company's cost of equity? (State your answer in percentage with two decimal point)
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