1. Boer Inc. expects to pay a dividend 1.2 in one year, it's current stock price is 50.0. and its dividend growth rate is 0.10. If Boer's investment bankers charge a flotation cost of 0.10 as a fraction of the price of a new stock issue, what is Boer's cost of issuing new equity?

2. Ebling Inc. finances with 0.4 fraction debt, 0.1 fraction preferred and the remaining common stock. Ebeling's before tax cost of debt is 0.07, it cost of preferred stock is 0.13, and its cost of common stock is 0.18. If Ebeling is subject to a 0.4 fraction corporate income tax, what is the company's Weighted Average Cost of Capital?