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Question 12 The following is information about ordinary shares of Funtastic Furniture Company $68.00 Current selling price Constant growth rate Most recently paid dividend, Do$3.50

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Question 12 The following is information about ordinary shares of Funtastic Furniture Company $68.00 Current selling price Constant growth rate Most recently paid dividend, Do$3.50 Flotation costs Marginal tax rate 8.00% 10.00% 30.00% What is Funtastic's cost of retained earnings? [5 marks] a b What is Funtastic's cost of new ordinary equity? [5 marks]

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