Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 5% forever. Its stock price is $38 and its beta is 1.8. The risk-free rate is 2% and the expected return on the market portfolio is 8%. What is the best guess for the cost of equity?

Tesla is expected to pay an annual dividend of $2.38 one year from now. Dividends are expected to grow by 3.4% every year and the current stock price is $185. Tesla is in the process of issuing new common stock, with flotation costs of 9% of the issue price. What is the cost of new common stock?