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You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D_1 = $1.75; P_0 = $115.00;

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You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D_1 = $1.75; P_0 = $115.00; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? 1. 9.98% 2. 8.60% 3. 8.52% 4. 10.49% 5. 7.05%

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