A companys common stock has a market value of $63.18 per share and its next dividend is expected to be $3.26 per share. The stocks beta is 1.2, the tax rate is 35%, and the market risk premium is 6.1% per year. The yield to maturity for the companys long-term debt is 6.4% per year. If the riskiness of the companys equity requires that it provide a risk premium of 3.2% per year over the yield on its long-term debt, what is the companys annual cost of internal equity financing?

This is a Finance Question