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Glaham Restaurants expects to pay a common stock dividend of $1.50 per share next year...

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Accounting

Glaham Restaurants expects to pay a common stock dividend of $1.50 per share next year (d1). Dividends are expected to grow at a 4% rate for the foreseeable future. Glahams common stock is selling for $18.50 per share and issuance costs are $3.50 per share. What is Glahams cost of external equity?

20.59%

12.11%

14.00%

10.00%

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