20. Southern Home Cookin' just paid its annual dividend of $1.2 a share. The stock has a market price of $41 and a beta of 0.85. The return on the U.S. Treasury bill is 2 percent and the market return is 10 percent. What is the cost of equity? A. 10.50 percent B. 8.80 percent C. 8.50 percent D. 6.80 percent E. None of the above 21. Emily, a financial analyst, is asked by a company to estimate the cost of capital for a new specific project. Emily will develop her estimates based on the cost of capital of another firm which has a similar line of business as the new project. Emily is utilizing: A. scenario approach B. subjective approach C. pure play approach D. capital adjustment approach