Question: Scripps Networks Interactive has a common stock that will pay a dividend of $4 per share next year. If the common stock price today is

Scripps Networks Interactive has a common stock that will pay a dividend of $4 per share next year. If the common stock price today is $49 and the growth rate of firm is 0, find the cost of capital for common stock.

Group of answer choices

4.37%

16.62%

12.82%

8.16%

none of the answers is correct.

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