13. Pasco Power has 45 million shares outstanding with a value of $100 per share. Book value of debt is $1.25 billion and the book value of equity is $2.5 billion. There are no other sources of capital. What is the weight of debt in the capital structure (for WACC)? Closest to: a) 22% b) 30% c) 33% d) 35 % e) 50% 14. IBM stock trades at $140 per share. Last year, IBM had EPS of $9.00 and paid dividends per share of $3.00. IBM dividends are expected to grow at a 5% rate forever. The expected rate of return on IBM stock, according to the dividend growth model, is closest to: a) 6.85% b) 7.15% c) 7.25% d) 7.5% e) 7.75%