Brenda Peter Inc. just paid a dividend equal to Php1.50 per share on its common stock, and it expects this dividend to grow by 4 percent per year indefinitely. The firm plans to issue common stock at a price of Php16 per share. Brenda's investment bankers estimate that the flotation costs for new issues of common stock will be equal to 8 percent of the price. What is Brenda's cost of new common equity?

 "The Shera Company just paid a dividend equal to Php3.00 per share on its common stock, and it expects this dividend to grow by 7 percent annually forever. The firm has a beta coefficient equal to 1.50, the risk-free rate is 10 percent, and the expected risk premium of the market is 6 percent. According to the capital asset pricing model, what is Shera's cost of retained earnings?"