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Rohr Inc.’s common stock currently sells for $64.00 per share, the company expects to earn $7.80...

Rohr Inc.’s common stock currently sells for $64.00 per share, the company expects to earn $7.80 per share next year, its expected payout ratio is 55%, and its expected constant growth rate is 4.30%. New stock can be sold to the public at the current price, but a flotation cost of 10% would be incurred. By how much would the cost of new stock exceed the cost of retained earnings?

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NO INTERMEDIATE ROUNDING IS DONE

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