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Question 26 (3 points) What is the cost of equity for TimberRoom, if the firm is expected to always pay a constant dividend of $2.22?

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Question 26 (3 points) What is the cost of equity for TimberRoom, if the firm is expected to always pay a constant dividend of $2.22? The firm's common stock is presently selling for $18.50. cannot be determined from the information giver 10.2% 12.0% 8.3% Question 27 (3 points) According to Bloomberg, Testway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Testway's cost of equity capital? 8.35% 16.2% 17.45% 9.55%

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