1)Calculate the price of Chico Companys stock if it pays dividends that today are $1.19 dollars and then continue to grow at the same rate of 5.9% forever while the risk of similar firms generally command a rate of return of 8.3%.

2)Anderson has a tax rate of 35%. Calculate their weighted average cost of capital if they have fifteen million dollars of preferred stock with an 6.6% cost of preferred stock, forty-five million dollars of equity with an 10.4% cost of equity, and forty million dollars of debt with a before-tax cost of debt of 5.2%.