ABC limited has expected earnings at TZS 30 per share of which it expects to distribute TZS 15 as dividend. The market price of its share is TZS 300. Find the following:

( i) Current cost of equity.

( ii)Cost of new equity if the firm issues fresh share at current market price but with a floating cost of 5%.

( iii )Cost of existing equity if a dividend tax of 15% is imposed on the distributed earnings when (a) current level of dividend amount is maintained (b) when dividend to the shareholders is reduced by the extent of dividend tax.

( iv) Cost of equity with dividend tax and floating cost.