1) Tom Purchased 100 shares of Delia Co. Stock at a price of 129.70 four months ago. He sold all stock today for $125.55. During the year the stock paid dividends. of $7.21 per share. What is Toms's effective annual rate?

Round the answer to two decimal places in percentage form.

2)

Calculate the cost of. new common equity financing of stock. R using Gordon Model

Round the answer to two decimal places. in percentage form.

______________________________Stock R

Last year Dividends $3.76

Growth rate of Dividends 7.5%

Selling Price of Stock $71.09

Floatation Cost $2.52

Cost of common Equity ?