PROBLEMS 1-If a firm sells new stock for S50.00 a share and incurs $5 in flotation costs, and the investors have a required rate of return of 15%, what is the cost of capital? If Gaggle changes its capital structure such as 45% debt; 590-2 preferred stock; and 50% common stock, what is Gaggle's cost of capital? Calculate cost of capital 3- Determine the cost for a preferredstoc that pays annual dividend of $4.25, has current stock price $58.50 and incurs flotation costs of $1.375 per share 4-A company expects dividends this year to be $1.10, based upon the fact that S1 were paid last year. The firm expects dividends to grow 10% next year and into the foreseeable future. Stock is trading at S35 a share. with a S3 floatation cost USE The Dividend Growth Model to calculate: a-Cost of retained earnings b-Cost ofnew stock with a S3 loatatin cost: 5- ABC Company is expected to pay annual dividend of US. 5, US. 10 US. 15, US. 20, US. 25, US. 30, US. 35, US. 40, US. 45, US. 50 per share for next 10 years. If the appropriate discount rate is 10% What is the value of the common stock