QUESTION 1 1 pointsSave Answer The CEO of Harding Media Inc. as asked you to help estimate its cost of common equity. You have obtained the following data: Do-$0.85; Po $22.00; and gl." 6.00% constant) The CEO thinks, however, that the stock pnce is temporarily depressed, and that it will soon rise to S40.00. Based on the dividend growth model, by how much would the cost of common from reinvested carnings change if the stock price changes as the CEO expects? 0 a-1.66% b.-2.03% c.-1.84% O d-2.23% Oe,-1.49% QUESTION 2 1 points Save Answer Bloom and Co. has no debt or preferred stoc-t uses only equity capital, and has two equally-sized divisions. Division X's cost ofcapital is 10.0% Division Y's cost is 14.09, and the corporate composite WACC is 12.0%. All of Division X's projects are equally risky, as are all of Division Y's projects. However, the projects of Division X are less risky than those of Division Y. Which of the following projects should the firm accept? a. A Division Y project with a 12% return. b. A Division Y project with an 11% return. c, A Division X project with a 9% return. d, A Division Y project with a 13% return. e. A Division X project with an 11% return