For questions7-12, Best Co. has 100 million common shares outstanding currently selling for $40/share. It has a dividend yield of 3% (hint: dividend yield is calculated as dividends paid in the last 12 months divided by its current share price) You believe Best Co. can grow dividends by 5% per year for perpetuity. According to the dividend growth model how much is Best Co's cost of equity? 7, a. 8.00% b. 8.15% c. 10.25% d. 12.30% e. 14.50% You believe Best Co. can grow its dividends by 5% per year for perpetuity. However, you think its cost of equity is 11%. How much are you willing to pay for its shares (choose the closest a nswer)? a. 126 b. 42 c. 21 d. 20 e. 18 st Co. is expected to earn $2/share in earnings (net income) next year. You believe Best Co. can ow its dividends at 5% per year and its cost of equity is 9%, what level of dividends next year will tify a purchase of Best Co. stock at $40/share today? a. $1.20 b. $1.26 $2.40 $2.52 None of the above O. Is expected to earn $2/share in earnings next year. If its payout ratio is 60% what is its ed sustainable constant growth rate in the future? 2.0% 2.5%