QUESTION 15 A firm can issue a 30-year, $1,000 par, semiannual bond with an 8% coupon rate at price of $1,024.72. Its marginal tax rate is 35%. The firm's beta is 1.25, and the required return on the market is 12%, and the risk-free rate is 196. The firm just paid their annual dividend of $2.25 and their constant growth rate is 8% annually. Their stock is currently valued at $21.00. Flotation costs of 10% per share will be incurred on new common stock issues. Estimate the cost of Retained Earnings using the CAPM method. O 7.00% 12.00% 0 13.25% O 13.69% O 14.50% QUESTION 16 A firm can issue a 30-year, $1,000 par, semiannual bond with an 8% coupon rate at price of $1,024.72. Its marginal tax rate is 35%. The firm's beta is 1.25, and the required return on the market is 12%, and the risk-free rate is 79. The firm just paid their annual dividend of $2.25 and their constant growth rate is 8% annually. Their stock is currently valued at $21.00. Flotation costs of 10% per share will be incurred on new common stock issues. Estimate the firm's Cost of New Common Stock. 13.79% 0 15.27% O 17.6896 19,7496 O 20.86%