Bluff City Sushi Distributors Would Like to Issue New Equity

Multiple Choice

Bluff City Sushi Distributors would like to issue new equity shares if its cost of equity declines to 16.5 percent.The company pays a constant annual dividend of $2.11 per share.What does the market price of the stock need to be for the firm to issue the new shares?

A) $11.59
B) $11.09
C) $12.79
D) $13.89
E) $14.39