Chelsea Fashions is expected to pay an annual dividend of $1.26 a share next year. The market price of the stock is $24.09 and the growth rate is 2.6 percent. What is the cost of equity? 9.77 percent 7.91 percent 9.24 percent 7.83 percent 7.54 percent Theresa's Flower Garden has 650 bonds outstanding that are selling for $1,007 each, 2,100 shares of preferred stock with a market price of $68 a share, and 42,000 shares of common stock valued at $44 a share. What weight should be assigned to the preferred stock when computing the weighted average cost of capital? Multiple Choice 6.08 percent 5.40 percent 6.67 percent 5.00 percent 5.75 percent