2. Mickey company has a marginal tax rate is 40 percent. The company can raise debt at a 10.9 percent interest rate. The risk-free rate is 5%, the return on the stock market is 12.5% and the firm has a beta of 1.75. The last dividend paid by Miller was $1.00 and its growth rate expected in earnings and dividends is 6 percent. Mickey plans to finance all capital expenditures with 40 percent debt and 60 percent equity. The stock price is $8.75 a) What is the average cost of equity using the Capm approach and the Discounted dividend approach then take the average of the two. (4 points) b) What is Mickey's overall WACC? (2 pts) are