Calculate the cost of retained earnings

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Reference no: EM131508723

Using the data for a firm shown in the following? table, calculate the cost of retained earnings and the cost of new common stock using the? constant-growth valuation model.

Current market price per share $31.00

Dividend growth rate 7%

Projected dividend per share next year $1.86

Underpricing per share $1.50

Flotation cost per share $1.75

Reference no: EM131508723

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