Question 4.4. The following financial information is available on Global Enterprises: Current per share market price: $12.25 Current (t = 0) per share dividend: $3.00 Expected long-term growth rate: 8.0% Global can issue new common stock to net the company $10.50 per share. Determine the cost of external equity capital using the dividend capitalization model approach. (Points : 3.4)

30.36% 38.86% 26.45% 30.86%