4. It is 1 January 1997. Normal America, Inc. (NA) has paid a year-end dividend in each of the last 10 years, as shown by the table below: A B D E F NORMAL AMERICA, INC. Doc. 31 Dec. 15 Year dividend per 58P 500 2 stock price share return 3 1 806 33.00 1987 30.69 2.50 1967 1.7% 5 35.38 2.50 1985 16.2% 1909 42.25 3.00 21.4% 1890 34.38 3.D0 1990 -3.3% 1901 36.25 1.60 1991 30.2% 1892 32.25 1.40 1982 7.4%% 0,80 1943 1994 42.13 D.80 1994 12 1.2% 1895 52.68 1.10 1985 13 1896 55.75 37.1% 1.60 1998 22.9% a. Calculate NA's B with respect to the S&P 500. b. Suppose that the Treasury bill rate is 5.5% and that the expected return on the market is E(M ) = 13%. If the corporate tax rate To = 35%, calculate NA's cost of equity using both the classic CAPM and tax- adjusted model. c. Assume that NA 's cost of debt is 8%. If the company is financed by 1/3 equity and 2/3 debt, what is its weighted average cost of capital using each of the two CAPM models