6. A stock has just paid 56 of dividend. The dividend is expected to grow at a constant rate of 9% year, and the common stock currently sells for $89. The before tax cost of debt is 6%, and the tax rate is 45%. The target capital structure consists of 35% debt and 62% common equity. What is the company's WACC if all the equity used is from retained earnings? 11.39% 12.07% 12 10485 10.02 1. A company just paid a dividend of D, = 52.00 for its stock. Company's dividend is expected to grow by 40% in the first year, by 35% in Year 2, by 12% in Year 3 and and at a constant rate of in Year 4 and thereafter. The required return on this stock is 8%. What is the stock's current value? $74.51 $8549 $78.43 573.72 $82.35