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(9 of 30) Consider a firm in the 40% tax bracket, which just paid a...

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Accounting

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(9 of 30) Consider a firm in the 40% tax bracket, which just paid a $.47 diyidend to common stockholders. If the firm estimates that the growth rate in dividends will be 6.25% and the stock is currently selling for $10.09 per share, what is the firm's cost of capital for the stock if it costs the firm $.50 per share to distribute the shares and print prospectuses? 11.20% 6.72% Cannot be determined from the information provided. 5.21% 11.46%

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