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The company will incur a flotation cost of 120 of the

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Average Corporation's stock currently sells for $45.00 per share, it is expected to pay a dividend of $3.10 next year, its growth rate is a constant 7.0%, and the company will incur a flotation cost of 12.0% of the market value if it sells new common stock. The firm's tax is 40%. What is the firm's cost of retained earnings?

Reference no: EM13479439

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