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The company has 5 million shares of common stock outsanding with a currently price of $14 per share. The stock exhibits a constand growth rate of 10 percent. The last dividend was $.80. New stock could be sold with flotation costs, including market pressure, of 15 percent. What is the average cost of retained earnings (avg. of CAPM and DCF)?

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Financial Management, Finance

Category:- Financial Management
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