What is MidStrataestimated cost of new common shares

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Question - MidStrata Company considers to issue new common stock that is currently trades at $32.50 a share. MidStrata's investment bankers estimate that it will cost $2.30 a share to issue new common stock. What is MidStrata's estimated cost of new common shares, if the firm's cost of retained earnings is 12.01%?

A. 12.25%

B. 8.50%

C. 15.00%

D. 13.02%

Reference no: EM133096093

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