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What would be the cost of new common stock equity for TMI if the firm just paid a dividend of $4.25, the stock price is

What would be the cost of new common stock equity for TMI if the firm just paid a dividend of $4.25, the stock price is $55.00, dividends are expected to grow at 8.5 percent indefinitely, and flotation costs are $3.25 per share?

16.23%

16.71%

16.88%

none of the above

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