7

Question 7 5 pts Weaver Brothers expects to earn $3.50 per share (E1), and has an expected dividend payout ratio of 60%. Its expected constant dividend growth rate is 6.4%, and its common stock currently sells for $30 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock? Your answer should be between 10.15 and 16.90, rounded to 2 decimal places, with no special characters