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The following information is available for two different common stocks: company A and Company B. Company A Company B utol 9 Free cash flow per

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The following information is available for two different common stocks: company A and Company B. Company A Company B utol 9 Free cash flow per share at the end of year 1 $1.00 $5.00 Finis Growth rate in cash flow per share 8% 4% Time Beta 1.3 .10 Risk-free return 7% 79% Expected market return 13.5% 13,5% Estimate the cost of equity for Company B. Select one: a. 6.45 O b. 12.2% O c. 15.45% d. 7.65% f

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