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Your company's stock sells for $50 per share, its last dividend (D0) was $2.00, its growth rate is a constant 5 percent, and the company
Your company's stock sells for $50 per share, its last dividend (D0) was $2.00, its growth rate is a constant 5 percent, and the company will incur a flotation cost of 15 percent of the price if it sells new common stock. What is the firm's cost of new common stock, re?
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