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Montreal Trustco Expects to Pay a Dividend of $5 Next

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Montreal Trustco expects to pay a dividend of $5 next year.Dividends are expected to grow at 3% for the foreseeable future and the market requires a rate of return of 7% on its stock.Montreal Trustco can issue new stock at $125 per share with after-tax flotation costs of $20 per share.The cost of issuing new equity to Montreal Trustco is:


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