(i)Describe the assumptions related to the problem:

• (ii)Apply the appropriate mathematical model:
• (iii)Calculation:
• 4)Assume that you have been provided with the following firm data: risk-free rate = 4%, market risk premium = 5%, and beta = 1.15. What is the cost of equity from retained earnings based on the CAPM approach (round your answer to two decimal places)?
• 5)A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $0.80, P0 = $22.50, and g = 5% (constant). Based on the DCF approach, what is the cost of equity from retained earnings (round your answer to two decimal places)?
• 6)The expected dividend is $1.50 per share of common stock priced at $15.00. What is the cost of internal common equity if the long-term growth in dividends is projected to be 4% indefinitely (round your answer to two decimal places)?