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Pure Michigan also issued Common Stocks. (2.5 Points) Common Stocks were sold at $45.00 per share but had to pay 7.0% in flotation expenses. A

Pure Michigan also issued Common Stocks. (2.5 Points)

Common Stocks were sold at $45.00 per share but had to pay 7.0% in flotation expenses.

A total of 216,667 shares are outstanding.

Dividend just paid = $3.50

Dividend Payout ratio = 40.0%

ROE: 11.67%

What is the cost of equity?

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