The dividend per share was P27 last year while the current market price of the shares is P135. The growth rate of equity is expected to be 8%.

REQUIRED:

• How much the current cost of equity?
• Assuming there is P5 cost to be incurred in issuing per share, how much is the current cost of equity?
• Assuming there is P5 cost to be incurred in issuing per share, how much is the current cost of internal equity?