Trahern Baking Co. common stock sells for $32.50 per share. It expects to earn $3.50...
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Trahern Baking Co. common stock sells for $32.50 per share. It expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, and its expected constant dividend growth rate is 6.0%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock? O a. 14.0496 O b. 15.4896 O c. 14.74% O d. 12.7096 O e. 13.3796
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