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Question 1 (of 4) value: 25.00 points P14-1 Calculating Cost of Equity [Lo1 The Down and Out Co. just issued a dividend of $2.86 per
Question 1 (of 4) value: 25.00 points P14-1 Calculating Cost of Equity [Lo1 The Down and Out Co. just issued a dividend of $2.86 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) 0 13.58% 0 8.72% o 12.9% O 13.17% 0 14.26%
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