Question: Question 7 (8.35 points) Jarett & Son's next expected dividend, D, is $2.25; it growth rate is 5%; and its common stock now sells for

Question 7 (8.35 points) Jarett & Son's next expected dividend, D, is $2.25; it growth rate is 5%; and its common stock now sells for $40.00. New stock (external equity) can be sold to net $36.00 per share. What is Jarett & Son's cost of new common stock, re? O 6.25% 5.625% 11.25% 10.625%

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