The following financial information is available on Rawls Manufacturing Company:
Rawls can issue new common stock to net the company $44 per share.Determine the cost of external equity capital using the dividend capitalization model approach.(Compute answer to the nearest 0.1%.)
A) 12.7%
B) 14.4%
C) 12.6%
D) 11.4%
Correct Answer:
Verified
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