A. Your? firm, People's Consulting? Group, has been asked to consult on a potential preferred stock offering by Brave New World. This 14?% preferred stock issue would be sold at its par value of $55 per share. Flotation costs would total 3.00 per share. Calculate the cost of this preferred stock.

B. Duke Energy has been paying dividends steadily for 20 years. During that? time, dividends have grown at a compound annual rate of 7?%.If Duke?Energy's current stock price is ?$78 and the firm plans to pay a dividend of $6.50 next? year, what is? Duke's cost of common stock equit?y?