35a) Snap, Crackle, Pop a national foods distributor - is seeking to estimate its WACC. As part of the process, youve been tasked to estimate the cost of their common equity. Their common stock currently sells for a market price of $25 per share. There are 3.14 million shares outstanding. Given a cash flow timeline of expected dividend payments from now to eternity, youve determined that the effective annual IRR of the stock is 10.95% per year. Youve also estimated the beta of the stock to be 1.39. The current risk free rate is 2.8% per year and the expected return on the broad stock market is 10.3%. The volatility of the broad stock market over the last 50 years has been 19.5% on an annual basis. Determine the most precise estimate of the cost of common equity. Enter your answer as a PERCENT, not as a decimal, with at least 4 digits of precision.

35b)ReLeaf, a natural health remedy company, is seeking to estimate their WACC.

ReLeafs capital is comprised of long term bonds, preferred stock and common stock.

ReLeaf's bonds have an estimated beta of 0.38. The YTM^EAR on the bonds is 5.8% per year. The firm's debt to asset ratio, based on market values (not book values), is 29.3%.

ReLeafs preferred stock pays a fixed annual-dividend of $1.62 per share, and currently trades at a price of $27.81 per share. The preferred stock has an estimated beta of 0.78. Based on market values, Releaf's preferred stock to asset ratio, is 7.1%.

ReLeafs common stock pays annual dividends, and currently trades at a price of $45.98 per share. The stock's next dividend, to be paid in 1 year, is expected to be $3.15 per share. The dividends are expected to grow at an annual rate of 3.3% per year forever. The common stock has an estimated beta of 1.16. The firm's equity to asset ratio can be inferred from (i) the firm's debt to asset ratio and (ii) the preferred stock to asset ratio.

The expected return on the broad stock-market is 10.9% per year, and the current risk-free rate is 2.9% per year.

ReLeafs tax rate is 28%.

Determine the most precise measure of the WACC.

Provide a WACC value as a PERCENT, not as a decimal, with at least 4 digits of precision.