The Third Cup Company has just paid a dividend of $3 per share.The dividends are expected to grow at a rate of 4% per year forever.The current stock price is $25 per share.The firm faces a tax rate of 40% and flotation costs of 5% on new stock issues.The cost of equity for new funds is:
A)9.89%
B)10.12%
C)16.48%
D)16.87%

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The Answer of The Third Cup Company has just paid a dividend of $3 per share.The dividends are expected to grow at a rate of 4% per year forever.The current stock price is $25 per share.The firm faces a tax rate of 40% and flotation costs of 5% on new stock issues.The cost of equity for new funds is:
A)9.89%
B)10.12%
C)16.48%
D)16.87%

The Third Cup Company Has Just Paid a Dividend of $3