1. A Inc. has a constant growth and its last dividend $2.00, paid yesterday. Stock analysts predict that the dividend is expected to grow indefinitely at a 5 percent rate. As share is selling at $25 today, what is its required rate of return of A Inc.

2. Based on the historical data, B Inc. has a beta of 1.5 against the S&P 500 return last ten years, Today, the risk-free rate is 3.8% (T-Bill), the return on the market portfolio (S&P 500) is 10.8%. Currently, B Inc.s share is sold at $75 and it has 5 million outstanding shares. Also, B Inc. has issued 200,000 semi annual coupon bonds last year. Now, its bonds is rated as AAA and it is traded at $1,010 in the market. The companys margin tax rate is 27%. What is B Inc.s after tax WACC?