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You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You obtained

You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You obtained the following data: D1 =$1.75; PO=$42.50; gL = 7.00% (constant); and F

= 5.00%. What is the cost of equity raised by selling new common stock?

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