2. Suppose Whitney Ltd. just issued a dividend of $2.08 per share on its common stock. The company paid dividends of $1.71, $1.82, $1.93, and $1.99 per share in the last 4 years. The stock currently sells for $45. a. What is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? (10 marks) b. What if you use the geometric average growth rate? (10 marks) c. What constraints are there in choosing a long-term dividend growth rate (e.g., minimums or maximums)? Explain your answer. (10 marks) on stock, 5% erred stock.25% debt cost of uity is 1 the cos per 3. Peacock Corp. a target capital sture00/com relevant ate is 35%. Lish and the cost of debt is %. Th What is Pear WACC? (10 m # stock finano g because i cos less th b. Th. any presid las aporoaches ou about Peacockapital struct and wants to ow why companyes not be more pr debt. Wha you tell the pre 40 marks) 4. Holyrood.just paid a of $2.45 per share le company ite dividend s 20% n year and will nen rece its dividend rowth rate by sercentage p nte per year es the industry avec dividendowth (i.e., 20%, 110%, 5%), after whic instant rowth rate forey. If the require return on Horod stock is 1% tha will a share of stoc cul for today? re ne com Har urn on t' sin astme t, 5. Peachytov Dank just issued s new preed str. The issue will pay a $20 nual divind in perpety y, begi ng 20 years from ow. If the mark requm how uch does a share o eferred stock cost t. ? (15 marks) . What are the ady ages of using the sec market line approach finding t cost of equit capital? nat are the disadva cages? What the specific p ces informonedea bir matbe blad Forsblo thoun of the Id not the ortimotor2 marci