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You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D = $2.30; Po =

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D = $2.30; Po = $45.00; g = 8.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? a. 13.81% b. 13.11% c. 12.87% d. 13.38% e. 12.71%

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