Use the dividend growth model to determine the required rate of return for equity. Your firm intends to issue new common stock. Your investment bankers have determined that the stock should be offered at a price of $45.00 per share and that you should anticipate paying a dividend of $1.50 in one year. You know that dividends are expected to grow at rate g but you dont know this rate. If you anticipate that the investment banking firm will take 5.00% per share as flotation costs, what is the required rate of return for this issue of new common stock?