21 8 0152 You have been asked to calculate a firm's WACC (weighted average cost of capital). The information you have gathered so far includes: . The firm's ROE is 10% and its Payout Ratio is 50% The firm has 10 million shares outstanding, each of which trades at a price of $10. The firm expects to pay a dividend of $100 at the end of the year The firm has outstanding debt with a face value of $50 million. These are all 20-year bonds with a 6% coupon (paid semi-annually) and they are selling at a price of $1.273.55 per $1,000 bond. The yield on Treasury bills is 3% The return on the market is 9% . The firm's beta is 2. The firm's tax rate is 30% What is the firm's growth rate, calculated using ROE and the Payout Ratio Multiple Choice 3 25