1. What is the cost of equity for an airline with a stock price of $16 per share and an annual dividend of $1.25 per share that is:
   1. not expected to grow?
   2. expected to grow at a constant rate based on its previous annual dividend, which was $1.10 per share?
   3. expected to grow at the above rate for the first three years, then 5 percent thereafter?
   4. What is the cost of equity for an airline with a stock price of $16 per share and an annual dividend of $1.25 per share that is:
      1. not expected to grow?
      2. expected to grow at a constant rate based on its previous annual dividend, which was $1.10 per share?
      3. expected to grow at the above rate for the first three years, then 5 percent thereafter?