Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7-30%, its tax rate is 25%, the next expected dividend is $0.70 a share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $17.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 65% debt and 35% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? O a. 7.36% O b.7.26% O c. 8.45% O d. 6.97% O e. 7.52% 0Icon Key Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.) Do not round your intermediate calculations. Economic Conditions Prob Return 30% 39.0% Strong Normal Weak 40% 14.0% 30% -20.0% O a. 29.62% O b. 22.96% O c. 24.18% O d. 16.23% O e. 13.25% Icon Key