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Your firm has common stock whose annual dividends are expected to have a constant growth rate of 3% indefinitely. The firm just paid a $2.00
Your firm has common stock whose annual dividends are expected to have a constant growth rate of 3% indefinitely. The firm just paid a $2.00 annual dividend yesterday and the stock us currently selling for $25 per share. Your firm intends to issue common stock for any new financing needs. If your flotation costs are 5%, what is the marginal cost of equity after flotation costs?
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