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Cost of common equity financing using gordon model

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Reference no: EM131419602

Last year the Black Water Inc. paid dividends $3.64. 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 $82.15. The investments banker will charge flotation costs $2.64 per share. Calculate the cost of common equity financing using Gordon Model.

Reference no: EM131419602

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