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You were recently hired by a company to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.5; g

You were recently hired by a company to estimate its cost of capital. You obtained the following data: D1 = $1.75; P0 = $42.5; g = 7%; F = 5%. What is the cost of new common stock (ke)?

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