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Your companys stock sells for $47 per share, the last dividend (D0) was $3, its growth rate is a constant 3 percent, and the company

Your companys stock sells for $47 per share, the last dividend (D0) was $3, its
growth rate is a constant 3 percent, and the company will incur a flotation cost of 13
percent if it sells new common stock. What is the firms cost of new equity, re?

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