I ONLLY NEED THE WORK AND ANSWER TO #3 PLEASE.

The Blue Sky Company has common stock outstanding that has a current price of $20 per share and a $1.50 current dividend (D₀). Blue Skys dividends are expected to grow at a rate of 5% per year, forever. The expected risk-free rate of interest is 3%, whereas the expected market risk premium [(R_M - R_f ) = 7%]. The beta on Blue Skys stock is 1.25.

a. What is the cost of equity for Blue Sky using the dividend valuation model?

b. What is the cost of equity for Blue Sky using the capital asset pricing model (CAPM)? [Chapter 12]

2. Given the following data for Water's Beginning firm:

1 million shares of common stock outstanding: price $12 per share.

The firm's outstanding bonds have ten years to maturity, a total

face value of debt = $5 million, face value per bond of $1,000,

current price = $985 with a coupon rate of 10%. Interest is paid annually. Yield to maturity of the bond id 10.25%

The risk-free rate is 7%, and analysts' expected return for the market is 14%.

Water's Beginning stock has a beta of 1.2 and is in the 34% marginal tax bracket.

Whats the WACC? (Use market value proportions for calculations) [Chapter 12]

3. Johnson Industries finances its projects with 40% debt, 10% preferred stock and 50% common stock.

The company can issue bonds at a YTM (Yield to Maturity) of 8%

The cost of preferred stock is 9%.

The company's common stock currently sells for $32 per share.

Next years dividend is expected to be $2.00 (D₁) and is expected to grow at 6% per year indefinitely.

The company's tax rate is 30%.

What is the company's WACC using internal equity (retained earnings)? [Chapter 12]