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You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D 1 = $1.75; P 0

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D₁ = $1.75; P₀ = $47.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock?

Group of answer choices

8.92%

9.25%

12.18%

10.88%

10.77%

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