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The Chargers common stock is just paid a $6 dividend. The firm would like to issue new common stock to raise project funds but expects
The Chargers common stock is just paid a $6 dividend. The firm would like to issue new common stock to raise project funds but expects to incur flotation costs of 3%. If the stock is currently selling for $40 and the growth rate in dividends is expected to be 5%, what is the after-tax cost of this stock?
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