Tranquility, Inc. has common shares with a price of $18.37 per share. The firm paid a dividend of $1.50 yesterday. If dividends are expected to grow at a rate of 9 percent for three years and then at 2 percent thereafter, what is the implied cost of common equity capital for Tranquility? O 9.5% O 12.5% 12.0% O 10.5%

Tranquility, Inc has common shares with a price of $18.37 per share. The firm paid a dividend of $1.50 yesterday, If dividends are expected to grow at a rate of 9 percent for three years and then at 2 percent thereafter, what is the implicd cost of common equity capital for Tranquility? 9.5%12.5%12.0%10.5%