Bouchard Companys stock sells for $20 per share its lastdividend (D0) was $1.00 its growth rate is a constant 6 percentand the company would incur a flotation cost of 20 percent if itsold new common stock. Retained earnings for the coming year areexpected to be $1000000 and the common equity ratio is 60percent. If Bouchard has a capital budget of $2000000 whatcomponent cost of common equity will be built into the WACC for thelast dollar of capital the company raises?
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