LiSeommon stock currently trades a $70 a share. It is expected to pay an annual dividend of 2.45 share at the end of the year (D-$2.45), the constant powth me is 79 percent sy What is the company's cost of common equity if all of its equity comes from retained earnings! Select one 11.6 A. Butcher Timber Company hired your consulting firm to help them estimate the cost of common equity. The yield on the firm's bonds is 8.75%, and your firm's economists believe that the cost of common can be estimated using a risk premium of 3.85% over a firm's own cost of debt. What is an estimate of the firm's cost of common from retained earnings? Select one 12.50N b. 13.1ON 13.63% d. 14.17 14.74