Question $1$:

Determine the weighted average cost of capital $($WACC$)$ for a company based on the given details:

The company has $5,000$ bonds outstanding with a par value of $$1,000$ and a coupon rate of $4\mathrm{.}7\%$ with semiannual payments. The current market price of the bonds is $$925,$ with twelve years to maturity.

There are $50,000$ shares of common stock outstanding, each trading at $$130$ per share. The company recently paid a dividend of $ $7\mathrm{.}5$ per share and is expected to grow at an annual rate of $5\%.$

The number of preferred stock outstanding is $20,000.$ Preferred stock pays $ $6$ per share of fixed dividend annually and is currently priced at $$80.$

The corporate tax rate is $21\%.$

Question $2$:

What is the cost of equity for a firm with a beta of $1\mathrm{.}5$ if the market risk premium is $6\%$ and the risk$-$free rate is $3\%?$