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9- LePage Co. expects to earn $2.00 per share during the current year, its expected payout ratio is 50%, its expected constant dividend growth rate
9- LePage Co. expects to earn $2.00 per share during the current year, its expected payout ratio is 50%, its expected constant dividend growth rate is 5.50%, and its common stock currently sells for $31.00 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?
A. 8.90%
B. 8.23%
C. 9.40%
D. 8.73%
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