1) You were recently hired to calculate a firm's WACC. The firm's capital structure is 40% debt, 45% common stock, and 15% preferred stock. The AFTER-tax cost of debt is 2.4%, the cost of preferred stock is 5.8%, and the cost of retained earnings is 9.9%. What is the firm's WACC? Enter your answer as a decimal with four places of precision.

2) O'Halloren Inc. has the following data: the risk-free rate is 2.5%, the return on the market portfolio is 7.7% and the firm's beta is 1.1. What is the firm's cost of equity from retained earnings based on the CAPM? Enter your answer as a decimal with 4 places of precision.