BIUvab Xx ADA Styles Styles Dictate Sensitivity Open Create and Share Request Pane Grammarly Adobe PDF Signatures 1.Banyan Co.'s common stock currently sells for $55.25 per share. The growth rate is a constant 8%, and the company has an expected dividend yield of 2%. The expected long-run dividend payout ratio is 20%, and the expected return on equity (ROE) is 10.0%. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of new equity? Do not round intermediate calculations. Round your answer to two decimal places. % 2. Travis Industries plans to issue perpetualpreferred stock with an $11.00 dividend. The stock is currently selling for $111.50, but flotation costs will be 7% of the market price, so the net price will be $103.70 per share. What is the cost of the preferred stock, including flotation? Round your answer to two decimal places. % 3.Kahn Inc. has a target capital structure of 55% common equity and 45% debt to fund its $8 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 8%, and a tax rate of 25%. The company's retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year (D,) is $3, and the current stock price is $33. a. What is the company's expected growth rate? Do not round intermediate calculations. Round your answer to two decimal places. % b. If the firm's net income is expected to be $1.0 billion, what portion of its net income is the firm expected to pay out as dividends? Do not round intermediate calculations. Round your answer to two decimal places. (Hint: Refer to Equation below.) Growth rate = (1 - Payout ratio)ROE