QUESTION FIVE A. A stock originally sold for K25 per share and ten years later, now sells for K40. The dividend last paid was K10. Find the Dividend yield and capital gains yield and total yield or return? [3 marks] B. Tomorrow Investments Ltd. just paid a divided of K2.00 in 2019 and the dividend is expected to grow at 15% for the next 3years and thereafter decline to 10%. The required rate of return on the stock is 18%. Find the value of the stock [9 marks] C. The Blue Dog Company has common stock outstanding that has a current price of $20 per share and a $0.5 dividend. Blue Dog's dividends are expected to grow at a rate of 3% per year, forever. The expected risk-free rate of interest is 2.5%, whereas the expected market premium is 5%. The beta on Blue Dog's stock is 1.2. a. What is the cost of equity for Blue Dog using the dividend valuation model? [2 marks] b. What is the cost of equity for Blue Dog using the capital asset pricing model? [2 marks] 3 D. Percy Motors has a target capital structure of 40% debt and 60% common equity. The yield to maturity on the company's outstanding bond is 9%, and its tax rate is 40%. Percy's CFO estimates that the company's WACC is 9.96%. What is Percy's cost of common equity? [4 marks]