The Boston Brewing Company is planning on issuing common stock at a market price of $13 per share. Last year the firm paid an annual dividend of $1.45, and analysyts expect the firm's future dividends will grow at an annual rate of 5 per cent forever. What is Boston Brewing Company's cost of common equity? a.16.71% b. 17.61% c. 17.71% d.  20.71%

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The Boston Brewing Company is planning on issuing common stock at a market price of $13 per share. Last year the firm paid an annual dividend of $1.45, and analysyts expect the firm's future dividends will grow at an annual rate of 5 per cent forever. What is Boston Brewing Company's cost of common equity?

a.16.71%

b. 17.61%

c. 17.71%

d.  20.71%

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