L$.$ePage Co$.$ expeets to earn $$3,00$ per share during the current year, its expected payout ratio is

$60\%,$ its expected constant dividend growth rate is $4\mathrm{.}50\%,$ and its common stock currently sells

for $$26\mathrm{.}00$ per share. New stock can be sold to the public at the current price, but a flotation cost

of $2\mathrm{.}5\%$ would be incurred. What would be the cost of equity from new common stock?

a$.11\mathrm{.}02\%$

b$.11\mathrm{.}60\%$

c$.12\mathrm{.}05\%$

d$.11\mathrm{.}42\%$Hettenhouse Company's perpetual preferred stock sells for $$107\mathrm{.}00$ per share, and it pays a

$$12\mathrm{.}00$ annual dividend. If the company were to sell a new preferred issue, it would incur a

flotation cost of $7\mathrm{.}00\%$ of the price paid by investors. What is the company's cost of preferred

stock for use in calculating the WACC?

a$.12\mathrm{.}06\%$

b$.11\mathrm{.}21\%$

C$.12\mathrm{.}95\%$

d$.12\mathrm{.}00\%$