Calculate cost of common equity financing using gordon model

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Last year the Black Water Inc. paid dividends $2.92. Company's dividends are expected to grow at an annual rate of 3% forever. The compnay's common stock is currently selling on the market for $86.52. The investments banker will charge flotation costs $4.44per share. Calculate the cost of common equity financing using Gordon Model. Round the answer to two decimal places in percentage form.

Reference no: EM131188093

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