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Consider the following data: D 1 = $1.55; P 0 = $49.50; g = 6.70% (constant); and F = 2.00%. What is the cost of

Consider the following data: D 1 = $1.55; P 0 = $49.50; g = 6.70% (constant); and F = 2.00%. What is the cost of equity raised by selling new common stock?

a.

9.90%

b.

9.25%

c.

8.90%

d.

10.75%

e.

10.90%

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