a. AMD is expected to pay a dividend of $1.50 per share next year. There has been a steady growth in dividends of 5.1% per year and the market expects that to continue. The current price is $25. What is the cost of equity? (2 point) b. Suppose we have a bond issue currently outstanding that has 25 years left to maturity. The coupon rate is 9% and coupons are paid semi annually. The bond is currently selling for $908.72 per $1000 bond. What is the cost of debt? (2 point) c. Suppose AMD has a market value of equity equal to $700 million and a market value of debt is $300 million. Using the above cost of equity (dividend method) and cost of debt. Calculate WACC. (2 points)