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MULTIPLE CHOICE Assume the current stock price is$40 pershare, nextyear's dividend is expected to be$2.00 and dividends are expected to grow at4% per year from

MULTIPLE CHOICE

Assume the current stock price is$40 pershare, nextyear's dividend is expected to be$2.00 and dividends are expected to grow at4% per year from here on out. What would be the cost of equity for thisfirm?

A.8.50%

B.9.00%

C.9.20%

D.6.00%

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