In order to meet their capital needs for the next year a firm will need to sell some additional shares of their Class A common stock. Flotation costs are estimated to be $3.00 per share. Class A shares currently trade at $100,000 and most recently paid a dividend of $7.000 per share. The firm expects to grow at a constant 7.5% for the foreseeable future. Calculate the firm’s cost of common equity from new shares. 7.76% 7.53% 7.00% 7.22% Investors are willing to pay $37.00 for a preferred share that recently paid an annual dividend of $1.75. The firm is expected to experience growth of 5.00% per year and its combined state + federal tax rate is 25%. How much would an investors earn on these shares? 4.73% 4.93% 4.3% 3.58% A preferred share recently paid an annual dividend of $9.00. Investors require a 10.0% return. The firm’s tax rate is 25% and is expected to experience growth of 8%. How much should investors be willing to pay? $90.00 $95.40 $71.55 $150.00 $159.00 A common share just paid a dividend of $1.75. Investors are willing to pay $35.00 and expect the stock to grow at a constant 4.30%, how much would and investor earn? 9.52% 9.74% 9.30% 10.30% 9.42% A common share just paid a dividend of $7.00. Investors require a 17% return and expect the stock to grow at a constant 7%. How much should investors be willing to pay? $74.90 $70.00 $44.06 $107.00 $100.00