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

4.50%

, and its common stock currently sells\ for

$26.00

per share. New stock can be sold to the public at the current price, but a flotation cost\ of

2.5%

would be incurred. What would be the cost of equity from new common stock?\ a.

11.02%

\ b.

11.60%

\ c.

12.05%

\ d.

11.42%

Hettenhouse Company's perpetual preferred stock sells for

$107.00

per share, and it pays a\

$12.00

annual dividend. If the company were to sell a new preferred issue, it would incur a\ flotation cost of

7.00%

of the price paid by investors. What is the company's cost of preferred\ stock for use in calculating the WACC?\ a.

12.06%

\ b.

11.21%

\ C.

12.95%

\ d.

12.00%

Hettenhouse Company's perpetual preferred stock sells for $107.00 per share, and it pays a $12.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 7.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC? a. 12.06% b. 11.21% C. 12.95% d. 12.00%