Question: Please solve this problem as soon as possible. Thank you 2. Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its

Please solve this problem as soon as possible. Thank you 2.

Please solve this problem as soon as possible. Thank you

2. Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $50.00 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? a. 10.79% b. 12.73% c. 10.68% d. 9.28% e. 13.38% s has a canital structure which consists of 60 nercent long-term debt and 40 percent common

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