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A company's common stock is currently selling at $40 per share. It's most recent divided was...

A company's common stock is currently selling at $40 per share. It's most recent divided was $1.60, and the financial community expects that it's dividend will grow at 10% per year in the foreseeable future. What is the company's equity cost of retained earnings? If the company sells new common stock to finance new projects and most pay $2 per share in flotation costs, what is the cost of equity?

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