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Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using
Using the data for a firm shown in the following table, calculate the cost of retained earnings and the cost of new common stock using the constant-growth valuation model.
Current market price per share $31.00
Dividend growth rate 7%
Projected dividend per share next year $1.86
Underpricing per share $1.50
Flotation cost per share $1.75
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