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Calculate the cost of new common equity financing of stock q

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Reference no: EM132758326

Problem 1: Calculate the cost of new common equity financing of stock Q using Gordon Model. Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box)

Stock Q

Last Year Dividend $4.28

Growth Rate of Dividends 2%

Selling Price of Stock $78.86

Floatation Costs $4.46

Cost of Common Equity ?

Reference no: EM132758326

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