Use the information to answer the following questions. The Global Advertising Company has a marginal tax rate of 40%. The company can raise debt at an 8% interest rate. The last dividend paid by Global was $3. Globals common stock is selling for $40 per share, and its expected growth rate in earnings and dividends is 6%. Global plans to finance all capital expenditures with 80% debt and 20% equity. What is Global's cost of common stock if it can use retained earnings rather than issue new common stock?

Group of answer choices

15.43%

18.00%

17.18%

13.95%

16.80%

Continued from the previous question. What is the firm's weighted average cost of capital if the firm has sufficient retained earnings to fund the equity portion of its capital budget?

Group of answer choices

9.37%

15.70%

13.91%

6.63%

11.12%

Continued from the previous question. Assume that the floatation cost of new stock issuing is 5%. What is Global's cost of common stock if it has to issue new common stock?

Group of answer choices

18.96%

17.61%

14.37%

16.23%

20.00%