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You were recently hired by Vestel Inc. to estimate its cost of capital. You obtained the following data: D1 = $2.20; P0 = $200; g

You were recently hired by Vestel Inc. to estimate its cost of capital. You obtained the following data: D1 = $2.20; P0 = $200; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

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