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A company wishes to determine its cost of common stock equity, rs. The market price, P0,...

A company wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $36.29 per share. The firm expects to pay a dividend, D1, of $4.20 at the end of the coming year, 2021. The dividends paid on the outstanding stock over the past 6 years (2015–2020) were as follows:

2015 $3.60

2016 $3.65

2017 $3.70

2018 $3.85

2019 $4.00

2020 $4.10

What is the cost of common stock equity financing

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