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QUESTION

FINAL Finance 5

Question 5

Calculate the cost of new common equity financing of stock Q using Gordon Model

Round the answer to two decimal places in percentage form. 

                Last year dividend        Growth Rate of Dividends      Selling Price of Stock   Floatation Costs    Cost of                                                                                                                                                                                                Common Equity

Stock Q             $1.33                                  7%                                             $41.29                       $2.29                              ?

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