The current stock price of Trans Continental Airways is $65 per share. TCA currently pays an annual per-share dividend of $3. Over the past 5 years this dividend has grown annually at a rate of 23%. A respected analyst assumes that the current growth rate of dividends will hold up for the next 5 years, after which dividend growth will slow to 5% annually. Use the two stage gordon function to compute the cost of equity. 21

On january 8, the end of the first weekly pay period of the year, regis company's payroll register showed that its employees earned $22,760 of office salaries and $70,840 of sales salaries. withholdings from the employees' salaries include fica social security taxes at the rate of 6.20%, fica medicare taxes at the rate of 1.45%, $13,260 of federal income taxes, $1,450 of medical insurance deductions, and $860 of union dues. no employee earned more than $7,000 in this first pay period. required: 1.1 calculate below the amounts for each of these four taxes of regis company. regis’s merit rating reduces its state unemployment tax rate to 3% of the first $7,000 paid to each employee. the federal unemployment tax rate is 0.60