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Required rate of return on a new stock issue

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Reference no: EM131914525

A stock is trading for 34, and just paid a dividend of 1.2 which is expected to grow at a fraction 0.05 per year. If Goldman Sacs charges a fraction 0.18 as a flotation cost, what is the required rate of return on a new stock issue?

Reference no: EM131914525

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