Ningbo Shipping Has Common Stock with a Market Price of $25

Multiple Choice

Ningbo Shipping has common stock with a market price of $25 per share and an expected dividend of $2 per share at the end of the coming year.The growth rate in dividends has been 5 percent and this growth is expected to continue indefinitely.Based on this information, the cost of the firm's common stock equity is

A) 5%.
B) 8%.
C) 10%.
D) 13%.
E) none of the above.