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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 Dividend growth rate Projected dividend per share next year Underpricing per share Flotation cost per share

$ 38.00 9% $ 1.90 $ 1.00 $ 1.50

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