1) weaver brothers expects to earn $3.50 per share and has expected dividend payout ratio of...

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1) weaver brothers expects to earn $3.50 per share and hasexpected dividend payout ratio of 60% . it's expected constantdividend growth rate is 7% and its common stock currently sells for$30 per share. new stock can be sold to public at the currentprice, but floatation cost of 5% would be incurred. what would bethe cost of equity from new common stock?
2) Sorensen systems inc, is expected to pay a dividend of $2.90at year end the dividend is expected to grow at a constant rate of5.50% a year and the common stock currently sells for $37.50 ashare. the before tax cost of debt is 7.50% and the tax rate is 40%. the target capital structure consists of 45% debt and 55% commonequity. what is the company WACC if all the equity used is fromretained earnings.

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1) weaver brothers expects to earn $3.50 per share and hasexpected dividend payout ratio of 60% . it's expected constantdividend growth rate is 7% and its common stock currently sells for$30 per share. new stock can be sold to public at the currentprice, but floatation cost of 5% would be incurred. what would bethe cost of equity from new common stock?2) Sorensen systems inc, is expected to pay a dividend of $2.90at year end the dividend is expected to grow at a constant rate of5.50% a year and the common stock currently sells for $37.50 ashare. the before tax cost of debt is 7.50% and the tax rate is 40%. the target capital structure consists of 45% debt and 55% commonequity. what is the company WACC if all the equity used is fromretained earnings.