The Lashgari Company has just paid a dividend of $2 per share (D_0 = $2), and that dividend is expected to grow at a constant rate of 5% per year in the future. What is the company's expected dividend in three years (D_3)? A. $2.10 B. $2.43 C. $2.00 D. $2.21 E. $2.32 Assume that you are a consultant to Morton Inc., and you have been provided with the following data: dividend expected to be paid, D_1 = $1.00: current stock price, P_0 = $25.00: and expected dividend growth rate, g = 6% (constant). What is the cost of equity from retained earnings based on the DCF approach? A. 9.86% B. 10.33% C. 10.20% D. 9.79% E. 10.00% For a typical firm, which of the following is correct? All rates are after taxes, and assume the firm operates at its target capital structure. (r_d: cost of debt: r_e: cost of common equity: r_s: cost of retained earnings: WACC: weighted average cost of capital) A. r_e > r_s > WACC > r_d. B. WACC > r_e > r_s > r_d. C. r_s > r_e > r_d > WACC. D. r_d > r_e > r_s > WACC. E. WACC > r_d > r_s > r_e. Klieman Company's perpetual preferred stock sells for $90 per share and pays a $7.50 annual dividend per share. What is the company's cost of preferred stock? (Ignore floatation cost.) A. 8.33% B. 7.50% C. 8.57% D. 8.77% E. 7.79%