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 retained

earnings common equity (rs) for weaver chocolate co.? what would be the cost of equity from

new common stock (re)?

cost of retained earnings common equity (rs) =

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)