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Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D_1 = $1.25: P_O = $22.50: g =

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D_1 = $1.25: P_O = $22.50: g = 5.00% (constant): and F = 6.00%. What is the cost of equity raised by selling new common stock? a. 8.84% b. 10.91% c. 10.58% d. 11.35% e. 11.78%

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