$1-$

During the next $12$ months, the company expects to pay dividends $($D$1)$ of $$1\mathrm{.}2$ per share, and the current price of its common stock is $$30$ per share. The expected growth rate is $9\%.$ If a $$5$ flotation cost is involved, compute the cost of new common stock. a$.4\mathrm{.}80\%.$ b$.13\mathrm{.}29\%.$ c$.13\mathrm{.}44\%.$ d$.13\mathrm{.}80\%.$

$2-$

UBF has retained earnings of $$150,000.$ What is the maximum amount a project can be financed $($break point$)$ without issuing new common stock if wcs $=0\mathrm{.}5?$

a$.$ $$333,333.$ b$.$ $$500,000.$ c$.$ $$200,000.$ d$.$ $$300,000.$

$3.$ Assume Lori$$s stock sells for $$15,$ the dividend expected to be paid is $$2$ and its long$-$term growth rate is $5\%.$ Find the cost of retained earnings.

a$.5\mathrm{.}13\%.$ b$.5\mathrm{.}14\%.$ c$.18\mathrm{.}33\%.$ d$.40\%.$