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You have been hired to help estimate the cost of capital. You obtained the following data: the next dividend paid is $1.07, the current share
You have been hired to help estimate the cost of capital. You obtained the following data: the next dividend paid is $1.07, the current share price is $21.55, dividends are growing at a constant rate 4.5% and the flotation cost for issuing new shares of common stock is 9.1%. What is the cost of equity raised by selling new shares of common stock? Enter your answer as a decimal with four places of precision.
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