You obtain the following information for the IYR Inc.'s common stock:
Quarterly dividend 5 years ago=1.0
Quarterly dividend just paid = 1.276
P0 = 30.0
Assuming that the stock is priced in equilibrium, what is IYR's cost of common stock?
a. 16.44%
b. 18.93%
c. 22.86%
d. 20.65%
e. 14.71%