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The Eastern Company's common stock currently trades at $29 a share. It is expected to pay an annual dividend of $3.50 a share at the

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The Eastern Company's common stock currently trades at $29 a share. It is expected to pay an annual dividend of $3.50 a share at the end of the year (D1- $3.50), and the constant growth rate is 5% a year. If the company were to issue new stock, it would incur a 10% flotation cost. What would the cost of equity from new stock be? 18.41% 17.07% None O 16.11% 15.36%

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