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The companys earnings and dividends are growing at a constant rate of 4%; the last dividend (D 0 ) was $5; and the current stock

The companys earnings and dividends are growing at a constant rate of 4%; the last dividend (D₀) was $5; and the current stock price is $40. The flotation cost of stock is 10%. What is the flotation premium?

(If the answer is 1.23%, enter 1.23)

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