what is the cost of new common stock of a company a constant growth stock...
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what is the cost of new common stock of a company a constant growth stock that has a year 1 dividend (d1) of $3.5 a growth rate (g) of 3% a current price (p0) of $40 but the company must pay a flotation cost of $5 per share to sell the new common stock?
a. 8.5%
b. 13%
c. 16%
d. 11.5%
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