To help them estimate the company's cost of capital, Pied Piper, Inc. has hired you as a consultant. You have been provided with the following data: DA = $3.15: Po = $31.70; 8 = 5.50% constant); and F = 6.50% (flotation costs). Based on the dividend growth approach, what is the cost of common equity for a new equity issue? 17.25% 16.13% 15.76% 18.40% Previous Next