Weaver Chocolate Co. expects to earn $4.00 per share during the current year, its expected dividend payout ratio is 70%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $45.00 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.O a. 11.93%O b. 15.36%O c. 12.55%O d. 12.22%O e. 12.94%

Step 1: Given Value for Calculation Current Earning per share = eps = $4Dividend Payout = dp =…

Answered: Weaver Chocolate Co. expects to earn…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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