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What would be the cost of new common stock equity

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Reference no: EM132997998

Question - What would be the cost of new common stock equity for Tangshan Mining if the firm just paid a dividend of $4.25, the stock price is $55.00, dividends are expected to grow at 8.5 percent indefinitely, and flotation costs are $6.25 per share?

a. 16.88%

b. 17.22%

c. 9.46%

d. 12.57%

Reference no: EM132997998

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