To calculate the cost of equity, cost of debt, and the weighted average cost of capital (WACC) for each company, we need to use some formulas and the given data. Let's go through each company step by step.
**i. Cost of Equity:**
The cost of equity can be calculated using the Gordon Growth Model (also known as the Dividend Discount Model):
\[
\text{Cost of Equity} (r_e) = \frac{D_1}{P_0} + g
\]
Where:
- \(D_1\) = Expected dividend per share next