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Flotation costs are associated with the sale of stock equal

A company has common stock that can be sold for $37.94 per share. The stock paid a dividend at the end of last year of $2.84. Dividends are expected to grow at an annual rate of 5% indefinitely. Flotation costs are associated with the sale of stock equal $4.61 per share. What is the corporation's cost of external equity?

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Finance Basics: Flotation costs are associated with the sale of stock equal

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