3. Mackenzie Company has a price of $38 and will issue a dividend of $2.00 next year. It has a beta of 1.1, the risk-free rate is 5.8%, and the market risk premium is estimated to be 4.7%. a. Estimate the equity cost of capital for Mackenzie. b. Under the CDGM, at what rate do you need to expect Mackenzie's dividends to grow to get the same equity cost of capital as in part a? 4. CoffeeCarts has a cost of equity of 15.7%, has an effective cost of debt of 3.7%, and is financed 65% with equity and 35% with debt. What is this firm's WACC? CoffeeCarts's WACC is %. (Round to one decimal place.)