1.A firm that is expected to pay a dividend of $5 at the end of this year has expected growth of 12%. The firm has a beta estimated at 0.9. If the S&P 500 is currently returning 14 while Treasury bonds are returning 2, what is the firm's after-tax cost of equity? Assume a tax rate of 40%.

2.Bama Tide Inc. typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's after-tax cost of debt has been estimated to be 6% while their after-tax cost of equity is estimated at 10%. If the firm faces a 40% tax rate, what is their WACC