Pure Michigan also issued Common Stocks.

Common Stocks were sold at $$35\mathrm{.}00$ per share but had to pay $9\mathrm{.}0\%$ in flotation expenses.

A total of $17,143$ shares are outstanding

Dividend just paid $=$$$3\mathrm{.}25$

Dividend Payout Ratio $=30\mathrm{.}0\%$

ROE: $7\mathrm{.}5\%$

What is the cost of equity?