Question: Einstein Engineering is issuing new common stock. The firm expects to pay a dividend of $2.25 per share next year and has a growth rate

Einstein Engineering is issuing new common stock. The firm expects to pay a dividend of $2.25 per share next year and has a growth rate of 6% per year. The existing stock price is $46.50 per share. Megabank is their underwriter, charging $3.50 per share as the selling cost. What is Einstein's cost of new equity? O 6.05% O 10.84% O 11.23% O 5.23%

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