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(Cost of internal equity) Pathos Co.'s common stock is currently selling for $26.19. Dividends paid last year were $0.60. Flotation costs on issuing stock will
(Cost of internal equity) Pathos Co.'s common stock is currently selling for $26.19. Dividends paid last year were $0.60. Flotation costs on issuing stock will be 12 percent of market price. The dividends and earnings per share are projected to have an annual growth rate of 7 percent. What is the cost of internal common equity for Pathos?(round to two decimals)
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