Question: Use the dividend growth model to determine the required return on equity: Price of equity = $45.00 anticipated dividend = $1.50 foeseeable growth rate =

Use the dividend growth model to determine the required return on equity:

Price of equity = $45.00

anticipated dividend = $1.50

foeseeable growth rate = 3.5%

floation cost = 7% per share

What is the required return for this issue of new common stock?

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