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Calculate the various costs of capital

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Calculate the various costs of capital given the following: the company's tax rate is 25%, the bank charges 11% interest, the next dividend paid will = $3.00, the market price of stock = $30.00 and the growth rate = 2%, selling new common stock costs (flotation cost) = 10%

a. cost of debt

b. cost of retained earnings

c. cost of common stock

Reference no: EM133112720

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