Question $1$: Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D$0=$ $$2\mathrm{.}00$; P$0=$ $$40\mathrm{.}00$; and g $=10\mathrm{.}00\%($constant$).$ Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations.

A$.15\mathrm{.}5\%$ B$.14\mathrm{.}5\%$ C $13\mathrm{.}5\%$ D$.12\mathrm{.}5\%$

Question $2.$ Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D$0=$ $$1\mathrm{.}00$; P$0=$ $$20\mathrm{.}00$; flotation costs$=10\%$ and g $=10\mathrm{.}00\%($constant$).$ Based on the DCF approach, what is the cost of equity from issuing new stocks? Do not round your intermediate calculations.

A$\mathrm{.}15\mathrm{.}56\%$ B$\mathrm{.}16\mathrm{.}11\%$ C$.15\mathrm{.}00\%$ D$.14\mathrm{.}65\%$