Question 7 1 pts Blair Brothers' stock currently has a price of $45 per share...
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Question 7 1 pts Blair Brothers' stock currently has a price of $45 per share and is expected to pay a year-end dividend of $2 per share (D1 = $2). The dividend is expected to grow at a constant rate of 2 percent per year. The company has insufficient retained earnings to fund capital projects and must, therefore, issue new common stock The new stock has an estimated flotation cost of $2 per share. What is the company's cost of equity capital? O 6.95% O 7.25% O 6.05% O 6.65% O 6.35%
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