Dividends are expected to grow at an annual rate

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Last year the black water inc paid dividends $3.24. Company's dividends are expected to grow at an annual rate of 5% forever. The company's common stock is currently selling on the market for $52.68. The investments banker will change flotation costs $3.46 per share. Calculate the cost of common equity financing using Gordon Model. Round the answers to two decimal places in percentage form.

Reference no: EM131045208

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