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meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting...

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meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows: Cost of equity from new stock =re=P0(1F)D1+gL The difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. % What is the cost of new common equity? Round your answer to 2 decimal places. Do not round intermediate calculations. %

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