1. Tapley has a stock price of $88/share, a current dividend of $4/share, and a growth rate of 10%. Additionally, the flotation expenses it faces in the external markets will be tiered based on the volume of stock it sells and they range from a low of 10% to a middle cost of 15% to a high cost of 20%.

a) Cost of Equity for Retained Earnings (Show your Work):

b) Cost of Equity with a 10% flotation expense (Show your Work):

c) Cost of Equity with a 15% flotation expense (Show your Work):

d) Cost of Equity with a 20% flotation expense (Show your Work):

With all of the data above, please calculate (Show your Work):

WACC₁ =

WACC₂ =

WACC₃ =

WACC₄ =

WACC₅ =

WACC₆ =