Souths preferred stock has a par value of $80 a share and a market price of $48 a share. Dividends per year are $6.2. What is the cost of existing preferred stock?

For the problem above, if the flotation cost for new preferred stock is $1.20, what is the cost of new preferred stock?

Sun Electric is expected to pay a dividend of $2.85 per share over the next year, and the stock is currently selling for $35 a share. If dividends are expected to grow at 3.5 percent a year, what is the cost of existing common stock?

For the problem above, if the flotation cost for new common stock is $1.00, what is the cost of new common stock?

S Corporations common stock has a beta of .83. The interest rate on 10 year U.S. Treasury bonds is 4.2 percent, and the interest rate on 1 year U.S. Treasury bills is 1.18 percent. Assuming an average market risk premium of 5.5 percent, use the mean-variance capital asset pricing model to estimate the cost of existing common equity for S Corporation.