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What is the cost of external common equity

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New common stock when the most recent dividend was $2.65. The company's dividends per share should continue to increase at a growth rate of 8 percent into the indefinite future. The market price of the stock is currently $48; however, flotation costs of $9 per share are expected if the new stock is issued.

What is the cost of external common equity?

Reference no: EM131428999

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