A Firm Is Determining Its Cost of Common Stock Equity

A firm is determining its cost of common stock equity. It last paid a divided of $.52, the dividends are growing at 5%, flotation costs are $2 per share and the firm will net $72 per share upon the sale of the stock. What is the firm's cost of common equity?

A) 3.49%
B) 8.22%
C) 6.11%
D) 5.76%