Cost of common equity financing using gordon model

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Reference no: EM131020052

Last year the Black Water Inc. paid dividends $4.51. Company’s dividends are expected to grow at an annual rate of 2% forever. The company’s common stock is currently selling on the market for $84.58. The investments banker will charge flotation costs $3.30 per share. Calculate the cost of common equity financing using Gordon Model.

Round the answers to two decimal places in percentage form.

Reference no: EM131020052

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