A firm has a beta of 2.0. The market is expected to yield 7.5% and the risk free rate is 2%. What is the cost of retained earnings for this firm? Answer in percentage without the symbol Your Answer: A firm is expected to pay a $4.00 dividend. The stock is currently selling for 66.20 and is expected to grow at a rate of 5%. What is the cost of new equity if floatation costs are 3%? Answer in percentage without the symbol Your Answer: A firm has a target capital structure that consists of 60% of retained earnings and the rest in debt. The firm's cost of retained earnings is9.8%. The firm's cost of new debt is similar to the yield to maturity of its existing bonds, which is 6.9%. The firm's tax rate is 30%. Given this information, and given that the firm has no preferred stock, what is the WACC? Answer in percentage without the symbol. Your