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A company just paid a $4 per share dividend on its common stock (DO=$4). The dividend is expected to grow at a constant rate of

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A company just paid a $4 per share dividend on its common stock (DO=$4). The dividend is expected to grow at a constant rate of 5.5 percent per year. The stock currently sells for $46 a share. If the company issues additional stock, it must pay its investment banker a flotation cost of $1 per share. What is the cost of external equity, re? 14.88% 14.58% 14.28% 15.12% 13.98%

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