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4,5% iv. None of the above 3. A. Inc has an expected dividend payment scheduled for the coming year to be $ 3.00/share. The stock

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4,5% iv. None of the above 3. A. Inc has an expected dividend payment scheduled for the coming year to be $ 3.00/share. The stock is expected to have a constant growth rate of 3%/year. The stock is selling for $39.00. Using the DCF method of estimating cost of equity, please calculate the cost of equity capital for CCOB with these given information. Would the cost of equity go up or down if the dividend payment goes up to $ 4.00/share? (9 points) B. using the SML approach to estimating cost of equity, please estimate it given: Return of the market portfolio (Rm)-9%, the risk free rate (Arf)-5.5% and The beta for the stock is 1.4. What happens to the cost of equity if RPm (the risk premium on the market portfolio) goes up to 5%? Calculate the new cost of equity (9 points)

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