Calculate cost of common equity financing using gordon model

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Reference no: EM131459110

Last year the Black Water Inc. paid dividends $4.35. Company’s dividends are expected to grow at an annual rate of 5% forever. The company’s common stock is currently selling on the market for $52.47. The investments banker will charge flotation costs $2.02 per share. Calculate the cost of common equity financing using Gordon Model

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

Reference no: EM131459110

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