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The cost of new common stock is D 1 P 0 - F + g R f + ( K m - R f )

The cost of new common stock is

\frac{D_{1}}{P_{0} - F} + g

R_{f} + (K_{m} - R_{f})

Y (1 - T)

\frac{D_{p}}{P_{p}} - F

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