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YT Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $0.75 dividend. Dividends are expected to grow
YT Inc. will issue new common stock to finance an expansion. The existing common stock just paid a $0.75 dividend. Dividends are expected to grow at a constant rate of 8% indefinitely. The stock sells for $48.00 and flotation expenses of 10% of the selling price will be incurred on new shares. What is the cost of internal equity?
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