Question - Last week, Baxter industries paid their annual dividend of $1.34 on their common stock. Last company predicts that the dividend will increase by 3.5 percent each year indefinetely. What is the firm's cost of equity if the stock is selling for $43 a share?
a. 4.89%
b. 6.62%
c. 6.73%
d. 7.12%
e. 7.38%