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Find the cost of new common equity 1 Next Dividend (0) 2 Dividend Growth Rate 3 Stock Price 4 Flotation Cost 5 Beta 6 Risk-free

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1 Next Dividend (0) 2 Dividend Growth Rate 3 Stock Price 4 Flotation Cost 5 Beta 6 Risk-free Rate 7 Expected Market Return 3 Cost of New Common Equity What is the correct formula for B7 to find the cost of new common equity using the constant growth dividend discount model? 8 225 4.00% $35.00 6.00% 1.15 2.50% 9.OON =B1/(B3"(1-B4))+B2 =B1/(B3"(1-B4))+B2 =B5+B4'B6 =B1/B3+B2

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