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a 7. Gator Products Company (GPC) is at its optimal capital structure of 70% common equity and 30% debt. GPC's WACC is 14%. GPC has a marginal tax rate of 40%. Next year's dividend is expected to be $2.00 per share, and GPC has a constant growth in earnings and dividends of 6%. The after-tax cost of common stock used in the WACC is based on new outside equity with flotation cost of 10%, while the before-tax cost of debt is 12%. What is GPC's current equilibrium stock price? a a. $12.73 b. $17.23 c. $20.37 d. $23.70 $37.20