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Rogers, Inc.,?operates a chain of restaurants located in the Southeast. The company has steadily grown to its present size of 48 restaurants. The board of directors recently approved a large-scale remodeling of the restaurants, and the company is now considering two financing alternatives.  Rogers’ current capital structure, which is considered optimal, consists of 40% long-term debt, 10% preferred stock, and 50% common stock. The current market value of the common stock is $30 per share, and the common stock dividend during the past 12 months was $3 per share. Investors are expecting the growth rate of dividends to equal the historical rate of 6%. Rogers is subject to an effective income tax rate of 40%.The after-tax cost of the common stock proposed in Rogers’ first financing alternative would be The after-tax cost of the common stock proposed in Rogers’ first financing alternative would beA. 16.00% B. 16.53% C. 16.60% D. 17.16% |