What is the cost of capital for adventure outfitter

Reference no: EM13272001

Adventure Outfitter Corp. can sell common stock for $27 per share and its investors require a 17% return. However, the administrative or flotation costs associated with selling the stock amount to $2.70 per share. What is the cost of capital for Adventure Outfitter if the corporation raises money by selling common stock?

A) 27.00%
B) 18.89%
C) 18.33%
D) 17.00%

Reference no: EM13272001

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