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A company plans to pay $2 dividend per share one year from now and the dividends are expected to grow at 10% per year indefinitely. If the current stock price is $42, and the flotation cost per share is $4, what is the cost of the common stock ?
Basic Finance, Finance
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Question - Discuss common stock valuation and the required assumption(s) for zero growth. Relate this discussion to a real-world problem.
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