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Amino industries common shares sell for $100 per share. Amino expects to set their next annual dividend at $4.00 per share. If Amino expects future

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Amino industries common shares sell for $100 per share. Amino expects to set their next annual dividend at $4.00 per share. If Amino expects future dividends to grow ot 5 percent per year, indefinitely, the current risk.free rate is 2 percent, the expected rate on the market is 7 percent, and the stock has a beta of 1.5. what should be the best estimate of the firm's cost of equity, by taking an average of the 2 estimates? Multiple Choice 18.50 percent 13.25 percent 925 percent

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