Bluff City Sushi Distributors would like to issue new equity shares if its cost of equity declines to 16.5 percent.The company pays a constant annual dividend of $2.11 per share.What does the market price of the stock need to be for the firm to issue the new shares?
A) $11.59
B) $11.09
C) $12.79
D) $13.89
E) $14.39
Correct Answer:
Verified
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