Question: Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.10; Po = $27.50; g =

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.10; Po = $27.50; g = 4.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? O a. 8.26% O b. 8.43% O c. 7.77% d. 8.00% O O e. 8.09%

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