Please answer all questions and show work

QUESTION 3

S. Bouchard and Company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $1.77; P0 = $36.00; and g = 6.00% (constant). The CEO thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $42.00. Based on the DCF approach, by how much would the cost of equity from retained earnings change if the stock price changes as the CEO expects? Do not round your intermediate calculations.

QUESTION 6

Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D0 = $1.95; P0 = $30.66; g = 5.00% (constant); and F = 8.00%. What is the cost of equity raised by selling new common stock if the new stock can be issued at P0?

QUESTION 8

You were hired as a consultant to Giambono Company, whose target capital structure is 30% debt, 10% preferred, and 60% common equity. The after-tax cost of debt is 5.75%, the cost of preferred is 8.50%, and