1: Maple Ltd has 1 million common shares outstanding. The beta on theses common shares is 1.25, and they are trading at a price of $20 per share. Maple paid dividends 1.75 per share last year. Analysts anticipate that these dividends will grow at an average annual rate of 2% for the foreseeable future. What is the component cost of new common equity if Maple's tax rate is 35% and flotation costs on new common equity are 6% before tax?

a)10.93%

b)11.11%

c)11.29%

d)11.49%

2: Ferny Inc. currently has 60 million common shares outstanding that have a current market price of $13 per share. The shares paid a dividend of $1.50 per share last year. And investment analyst expect the dividends to grow at an average annual rate of 2% for the foreseeable future. If flotation costs on new common shares are expected to be 3% after tax. Ferny's tax rate is 30% and ferny intends to finance its growth from retained earnings, what is the component cost of Ferny's common shares?

a)11.77%

b)13.54%

c)11.77%

d)14.13%

3: Cypress Ltd. has 5 million common shares outstanding. Last year the shares paid a dividend of $0.22 per share. Analyst have shared that they expect these dividends to grow at an average annual rate of 3% for the foreseeable future. The beta on Cypess common shares is 1.50 the risk free rate of return is 3% and the expected return on the market is 10%. Given this information, what is the current price of Cypess common shares?

a)$1.51

b)$1.68

c)$2.10

d)$2.16