Calculate the following:

a)The cost of equity if the risk-free rate is 2%, the market risk premium is 8%, and the beta for the company is 1.3.

b)The cost of equity if the company paid a dividend of $2 last year and is expected to grow at a constant rate of 7%. The stock price is currently $40.

c)The weighted average cost of capital (WACC) if the company has a total value of $1 million with a market value of its debt of $600,000 and a market value of its equity at $400,000. Its cost of debt is 6% and its cost of equity is 15%. The tax rate it pays is 25%.