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The firm issued a new stock for $15, with the $1.10 dividend just paid, expected to grow at 6%. The flotation cost of selling new

The firm issued a new stock for $15, with the $1.10 dividend just paid, expected to grow at 6%. The flotation cost of selling new common stock is $1.15. Whats the rate of return for an investor on this new common stocks?

15%

13.77%

14.42%

11.32%

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