14- A company has common stock that is currently priced at $87 a share. The company is expected to pay a dividend of $3.75 next year. If the dividend growth rate is 3%, what is the cost of equity? (7.31%) 15- A certain firm just paid their annual dividend of $2.25 a share. The stock has a market price of $53 per share and a beta of 0.94. The return on the U.S. Treasury bills is 2.5 percent and the market has a 12 percent rate of return. What is the cost of equity? (11.43%) 16- If a company pays $4.50 as the annual dividend on their preferred stock, and the stock is currently selling for $75 a share, what is their cost of preferred stock? (6.00%) 17- The common stock of a firm paid a dividend of $1.75 in the year just ended. Suppose their dividend is expected to grow at a rate of 10% in the coming year, 8% in year two, and at a rate of 4% annually thereafter. If the required rate of return is 10%, what is the current value of their stock? ($33.25)