Yi Corporation has no preferred stock and reports the following: 2009 Earnings per share $1.80 Dividends per share $0.72 Book Value per share-end of year $8.62 39. If price-to-book value at the end of 2009 equals 1.00, and return on beginning of year equity is expected to remain constant, then cost of equity (to nearest percent) equals: A) 15% B) 21% C) 24% D) Not determinable 40. If Yi Corporation had preferred stock outstanding then the earnings per share amount of $1.80 would be A) unchanged. B) cannot be determined. C) greater than $1.80. D) less than $1.80