Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $45.00; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?

		9.94%
		7.80%
		6.52%
		9.71%
		7.96%

Weaver Chocolate Co. expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock?

		12.70%
		13.37%
		14.04%
		14.74%
		15.48%