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The following information is available for two different common stocks: company A and Company B. Company A $1.00 Free cash flow per share at the

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The following information is available for two different common stocks: company A and Company B. Company A $1.00 Free cash flow per share at the end of year 1 8% Growth rate in cash flow per share Beta 1.3 7% Risk-free return 13.5% Expected market return Estimate the cost of equity for Company B. Select one: a. 15.45% b. 6.45 C.7.65% d. 12.2%

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