Question: QUESTION 4 7 points Save Answer The earnings, dividends, and stock price of Fina, Inc. are expected to grow at 10 percent per year in

QUESTION 4 7 points Save Answer The earnings, dividends, and stock

QUESTION 4 7 points Save Answer The earnings, dividends, and stock price of Fina, Inc. are expected to grow at 10 percent per year in the future. Fina's common stock sells for $85 per share, and its next dividend is expected to be $2.00 per share. If the company issues additional stock, they would incur a float cost of $8.00. . Using the discounted cash flow approach, what is its cost of external common equity (Re or le)? A. 12.86% B. 12.60% C. 12.59% D. none of the above

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