Question: Please help me get the answer. The solution is the most important. Thanks Question 1 What would be the cost of new common stock equity

 Please help me get the answer. The solution is the most

Please help me get the answer. The solution is the most important. Thanks

Question 1 What would be the cost of new common stock equity for Beedee, Inc. if the firm just paid a dividend of P21.25, the stock price is P275.00, dividends are expected to grow at 8 percent indefinitely, and a flotation cost of 11 percent would be incurred? 10.72% 17.38% 19.35% 16.68% Question 2 A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Target Market Proportions After-Tax Cost Long-term debt 40% 6% Preferred stock 12 Common stock 50 15 The firm's tax rate is 30%. 10 The weighted average cost of capital is 11.10 percent 11.00 percent 10.38 percent 32.70 percent

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