Based on the following information, please answer questions 37-39: Renee Electric has a capital structure that consists of 70% equity and 30% debt. The company's 10-year bonds with 10% coupon rate are selling at price of $1,106.82 (assume that the coupon is paid semi-annually). Renee's common stock currently trades at $45 per share. The year-end dividend is expected to be $2.50 per share, and the dividend is expected to grow forever at a constant rate of 7% a year. The company estimates that it will have to issue new common stock to help fund this year's projects. The flotation cost on new common stock issued is 10%. The company's tax rate is 40%. What is the company's weighted average cost of capital, WACC? 1) 10.73% 2) 13.17% 3) 11.73% 4) 7.48% 5) 9.73%