P & B manufacturers has paid the following dividends during the last years:

2019 $1.26

2018 $1.17

2017 $1.08

2016 $1.00

P & B expects next year dividends will growth at the same rate. P & B expects to issue new common stocks at $40. The investment bank will charge a cost of 5% per share for issuing and selling the stocks.

Calculate the cost of new common stocks

Seleccione una:

11.58%

3.25%

11.51%

3.15%

11.25%

11.40%

none of the above