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Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $42.50; g =

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $42.50; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? a. 6.10% b. 8.13% c. 9.43% d. 6.42% e. 6.91%

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