What is the corporations cost of external equity submit


A company has a common stock that can be sold for $55.5 per share. The stock paid a dividend at the end of last year of $1.69. Dividends are expected to grow at an annual rate of 8% indefinitely. Flotation costs associated with the sale of stock equal $3.13 per share. What is the corporation's cost of external equity? Submit your answer as a percentage and round to two decimal places.

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