1. Sideways Company has 100 million shares outsanding that sell at $40 per share. It has 10 million shares of preffered stock that sell for $20 per share and pay dividends of $1 per share. It has $1 billion of debt. Its stock's beta is 0.75, and YTM on its binds is 7%. Assume that the risk-free rate is 3%, the corporate tax rate is 30%, and the market premium is 8%. What is Sidways Company WACC?

2. Kevin is saving for retirement. Today is his 30th birthday. He wants to retire on his 70th birthday and withdraw $10,000 at the end of his first month of retirement through his 95th birthday. He believes that he can earn 7% APR. His current monthly income is $3000, but he expects it to grow at a rate of 0.2% every month. What percentage of his income does he have to save in order to reach his goal?