Serty Manufacturing paid a dividend yesterday of $5 per share (D. - $5). The dividend is expected to grow at a constant rate of 8% per year. The price of Sentry Manufacturing's stock today is $29 per share. If Sentry Manufacturing decides to issue new common stock, fotation costs will equal $2.50 per share. Sentry Manufacturing's marginal tax rate is 35%. Based on the above information, the cost of new common stock is OA 28.38% OB. 24.12% OC 31.40% OD. 26.62% 25 Expected rate of rulum and nisk) Summerville Inc. is considering an investment in one of two common stocks. Given the information in the popup window which investment is better, based on the risk (as measured by the standard deviation) and eum of each? a. The expected rate of retum for Stock Ais %. (Round to two decimal places) The expected rate of return for Stock Bis _%. (Round to two decimal places) b. The standard deviation for Stock Als _* (Round to two decimal places) The standard deviation for Stock Bis % (Round to two decimal places) 6. Based on the risk measured by the standard deviation) and return of each stock, which investment is better? Select the best choice below) O A Stock A is better because it has a higher expected rate of retum with less risk. OR Stock B is better because it has a lower expected rate of retum with more risk 1: Data Table COMMON STOCKA PROBABILITY RETURN 0.30 12% COMMON STOCKB PROBABILITY RETURN 0.15 - 5% 0.40 0.30 16% 18% 0.35 Click on the con located on the top right comer of the datatable above in order to copy is contents into a spreadsheet.) 0.35 0 15 15% 20% 26. Common stock valuation) Bates Inc. pays a dividend of $2.00 and is currently selling for $31.85, investors require a tum of 9 percent on their investment from buying Bates stock, what growth rate would Bates Inc. have to provide the The growth Bates ine, would have to proide the imeston is %. (Round to two decimal places.)