1. Omni Consumer Products has perpetual preferred stock outstanding that sells for $30 a share and pays a dividend of $2.50 at the end of each year. What is the required rate of return?

2. Globex stock currently sells for $40 per share. It just paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 5% per year. The required rate of return on the stock is 10%. What is the stocks current value per share?

3. Oscorp Industries has a target capital structure of 30% debt and 70% common equity. With no preferred stock. The yield to maturity on the companys outstanding bonds is 9%, and its tax rate is 20%. The CFO estimates that the companys WACC is 10.5%. What is Oscorps cost of common equity?