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Question 13 A stock dividend and a stock split should, at least conceptually, have the same effect on shareholders' wealth. Not yet answered Select one: Marked out of 1.00 True Flag question False Question 14 Not yet answered Marked out of 9.00 The earnings, dividends, and stock price of a firm are expected to grow by 6% per year in the coming years. The firm's common stock sells for $25 per share. The company's last year's dividend was $2 per share. The company will pay a divided of $2.17 per share at the end of this financial year. . a) What is the company's cost of equity from retained earnings (ks) using the Discount Cash Flow approach? b) If the firm's beta is 1.55, the risk-free rate is 11%, and the average return on the market is 13%, what is the company's cost of equity (ks) from retained earnings using the CAPM approach? . c) If the bond of the company earns a return of 12%, what will ks be if the risk premium is 2% using the Bond-Yield-Plus- Risk-Premium approach? . d) Based on the results from parts a) through c), what would you estimate the firm's cost of retained earnings ks to be? P Flag question NOTE: Show your working and provide your answer in percentage form to 2 decimal places. 7 B I