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A company has recently paid dividend of $1.1542. If the dividend growth rate that is constant is 8.3%, what would be the cost of external

A company has recently paid dividend of $1.1542. If the dividend growth rate that is constant is 8.3%, what would be the cost of external equity for the company given that the stock price is currently $23.06? Assume that the company has to pay a flotation cost of $1.00 per share on the new issue.

Question 25 options:

13.97%

12.36%

14.08%

15.36%

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