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What is cost of equity raised by selling new common stock

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Question - Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $0.65; P0 = $20.00; g = 3.50% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

a. 6.96%

b. 7.08%

c. 6.84%

d. 6.75%

e. 6.57%

Reference no: EM133183652

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