Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected...
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Finance
Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $65.00 per share. 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? Do not round your intermediate calculations. Look up the formula for cost of equity with flotation in chapter 10 for help.
Group of answer choices
9.68%
10.75%
9.01%
8.91%
11.04%
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