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Business, 26.06.2020 22:01 ctyrector

The dividend is expected to grow at a constant rate of 8% per year. The price of Asian Trading Company's stock today is $29 per share. If Asian Trading Company decides to issue new common stock, flotation costs will equal 11%. Asian Trading Company's marginal tax rate is 35%. Based on the above information, the cost of new common stock is: a. 25.24%.

b. 27.37%.

c. 26.62%.

d. 20.86%.

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