QUESTION 21 You were hired as a consultant to Bravo Company, and you were provided with the following data: Target capital structure: 30% debt, 20% preferred, and 50% common equity. The interest rate on new debt is 7.5%, the yield on the preferred is 7.0%. The company's common stock is trading at a price of $52.00. The company is expected to pay a dividend of $3.38 a year from today, and this dividend is expected to grow at a constant rate of 4.0%. The tax rate is 25%. What is the company's cost of equity for retained earnings or common stock? O A. 7.1% OB. 8.1% O C. 8.5% O D.9.7% O E. 10.5%