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A company has an expected dividend D1 of $3.00 per share. Its growth rate is 4%,...

A company has an expected dividend D1 of $3.00 per share. Its growth rate is 4%, its common stock now sells for $36. New external equity can be sold to net price of 32.40 per share.
Find:
a. cost of retained earnings
b. percentage flotation cost
c. cost of new common stock
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