Answer:
<u><em>Cost of Equity = 13.36% </em></u>
Explanation:
Cost of Equity is required = ??
Discounted Dividend Model or DDM model can be used to calculate cost of equity from new common stock.
Before starting to solve, let's find out what have been given already:
Earnings = 3.50 USD
Payout Ratio = 65%
G = Growth Rate = 6.0%
F = Flotation Cost = 5%
P = Current Share Price = 32.50 USD
First Step is to find out the expected dividend.
Dividend = Expected Earning x Payout Ratio
Dividend = 3.50 x 65%
D = Dividend = 2.275 USD
So, now we have everything on board, let's find out cost of equity.
Cost of Equity = 
+ G
Cost of Equity = 
+ 0.06
<u><em>Cost of Equity = 13.36% </em></u>
<span>This would be productivity. This is the metric that shows how well a country is using its resources, as well as how efficiently those resources are being implemented. Higher levels of productivity can bring larger profits to businesses, which can lead to higher employment and larger levels of future investment in those businesses.</span>
<span>A direct democracy, also known as a pure democracy. This is where each individual has a vote, and directly decides on the things that are up for decision. This differs from a representative democracy, where people elect representatives which vote for them.</span>
Answer: Price of bricks will increase and quantity will increase.
Explanation: Since Stone and bricks are substitutes to each other, a rise in the price of stone due to the new regulation will lead to a rise in the demand for bricks. Since bricks are now relatively cheaper as compared to stones after the price rise, people will use more bricks than stones. This will shift the demand for bricks to the right driving upwards the price for bricks and also increase the quantity of bricks being sold in the market.
