Prof provided the answer key but REQUIRES showing the solution/analysis using Excel functions/formulas STEP-BY-STEP. 

Q15.

Answer Key:

R_E = .0991, or 9.91%

Question:

The Tribiani Co. just issued a dividend of $2.90 per share on its common stock. The company is expected to maintain a constant 4.5 percent growth rate in its dividends indefinitely.

• If the stock sells for $56 a share, what is the company's cost of equity?

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Q16.

Answer Key:

Arithmetic R_E = .1089, or 10.89%

RE = .1088, or 10.88%

Question:

Suppose Wacken, Ltd., just issued a dividend of $2.73 per share on its common stock. The company paid dividends of $2.31, $2.39, $2.48, and $2.58 per share in the last four years. If the stock currently sells for $43, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? What if you use the geometric average growth rate?