QUESTION $20$

interest rate is required to meet their retirement goal?

A$.6\mathrm{.}51\%$

B$.5\mathrm{.}78\%$

C$.5\mathrm{.}19\%$

D$.4\mathrm{.}71\%$

E$.4\mathrm{.}29\%$

F$.3\mathrm{.}92\%$

G$.3\mathrm{.}60\%$

H$.3\mathrm{.}31\%$

QUESTION $21$

A stock is selling at $$115\mathrm{.}00.$ The firm is going to pay the next dividend $(D_1)$ at $$5\mathrm{.}50$ per share. Assume that the growth rate $g=09\%.$ What would be the cost of equity raised by selling new stocks, assuming that

the flotation cost is zero? $($Hint: Find the required rate of return.$)$

A$.0\mathrm{.}87\%$

B$.1\mathrm{.}52\%$

C$.2\mathrm{.}17\%$

D$.2\mathrm{.}83\%$

E$.3\mathrm{.}48\%$

F$.4\mathrm{.}13\%$

G$.4\mathrm{.}78\%$

H$.5\mathrm{.}43\%$