1 Pre-Tax Cost of Debt 2 Cost of Equity 3 Weight of Debt 4 Weight of Equity Tax Rate 6 WACC B 9% 11% 30% 70% 35% ? What is the correct formula for cell B6? =B3*B1+B4*B2*(1-B5) =B3B1+B4B2 -B1B5 B3+B4B2 -B3"(B1"(1-B5))+B4'B2 26 B 1 2 58 3 52 47 5 SMALL(A1:A4,4) "SMALL(A1:A4,1)/SMALL(A1:A4,3) What is the value of cell B5? 49 29 32 47 1 Next Dividend (D) 2 Dividend Growth Rate 3 Stock Price 4 Flotation Cost 5 Beta 6 Risk-free Rate 7 Expected Market Return 8 Cost of New Common Equity 2.25 4.00% $35.00 6.00% 1.15 2.50% 9.00% ? What is the correct formula for B7 to find the cost of new common equity using the constant growth dividend discount model? -B5+B4-B6 =B1/(B3"(1-B4))+B2 -B1/(B3"(1-B4))+B2 -B1/B3+B2