40.-42. Assume that you are working as a Financial Analyst for Wexton Warehouses, Inc. The firm is planning to issue new common stock equity financing. You are asked to calculate the cost of this new equity financing using the Security Market Line (SML) formula. You obtain the following information: The most recent annual return on the Standard & Poor's 500 Stock Index is 11% The most recent annual return on a US Treasury Bond is 6%. You calculate the beta for Weston Warehouses to be 95 Given this information, please calculate the cost of new equity financing for this firn. 1 Now assume that you are also asked to calculate Wexton Warehouses cost of new common equity financing using the Gordon Constant Growth Stock Model. To use this Model, you obtain the following information . . The next expected dividend on Weston Warehouses common stock is forecast to be $2.10 per share. The firm is expected to grow at a constant annual rate of 5%. The market pnce per share for the stock that Weston previously issued is $47.30 . Given this information, please calculate the cost of new equity financing for this firm using the Gordon Constant Growth Stock Model. b. Why do you think there is a difference in the cost of equity financing that you calculated using the SML formula and the Gordon Constant Growth Stock Model? Please describe