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Wallace Retail stock currently trades for $25 a share. It is expected to pay a dividend of $2 a share during the coming year and

Wallace Retail stock currently trades for $25 a share. It is expected to pay a dividend of $2 a share during the coming year and the growth rate is constant at 5% a year. What is the companys cost of equity from retained earnings? If the company issued new stock the flotation cost would be $3. What is the cost of equity from new stock?

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