Compute cost of common equity financing using gordon model

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Question: Last year the Black Water Inc. paid dividends $3.76. Company's dividends are expected to grow at an annual rate of 3% forever. The company's common stock is currently selling on the market for $94.14. The investments banker will charge flotation costs $3.42 per share. Calculate the cost of common equity financing using Gordon Model.

Round the answers to two decimal places in percentage form.

Reference no: EM131796512

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