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The earnings, dividends, and stock price of Fina, Inc. are expected to grow at 10 percent per year in the future. Finas common stock sells

The earnings, dividends, and stock price of Fina, Inc. are expected to grow at 10 percent per year in the future. Finas common stock sells for $85 per share, and its next dividend is expected to be $2.00 per share. If the company issues additional stock, they would incur a float cost of $8.00. . Using the discounted cash flow approach, what is its cost of external common equity (Re or Ie)? A. 12.86% B. 12.60% C. 12.59% D. none of the above

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