FIN 3403 – Tip Top Hats (TTH) is expected to grow at a 4 percent rate

1. Tip Top Hats (TTH) is expected to grow at a 4 percent rate for as long as it is in business. Currently the company’s common stock is selling for $34 per share. The most recent dividend paid by TTH was $4.25 per share. What is the company’s cost of common equity?