3. a) The share of a company is currently selling for tk 300. It wants to finance its capital expenditures of tk 1000 million either by retaining earnings or selling new shares. If the company sells new shares, the issue price will be tk 290. The dividend per share is tk 25 and it is expected to grow at 7.5 per cent. Calculate (i) the cost of internal equity (retained earnings) and (ii) the cost of external equity. (2.5) b) The current market price of a company's share is tk 250 and the expected dividend per share next year is tk 17. The company's payout ratio is 30 per cent and internal rate of return is 5 per cent. What is the company's cost of equity? (2.5)