What is the cost of new common stock of a company

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Question - What is the cost of new common stock of a company, a constant growth stock, that has a year-1 dividend (D1) of $3.5, a growth rate (g) of 5%, a current price (P0) of $40, but the company must pay a flotation cost of $5 per share to sell the new common stock?

Reference no: EM133167173

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