Calculating the cost of equity Suppose stock in Boone Corporation has a beta of $\mathrm{.}90.$ The market rate premium is $7$ percent, and the risk$-$free is $8$ percent. Boone's las dividend was $$1\mathrm{.}80$ per share, and the dividend is expected to grow at $7$ percent indefinitely. The stock currently sells for $$25.$ What is Boone's cost of equity capital? Calculating the WACC. In addition to the information in the previous problem, suppose Boone has a target debt$-$equity ratio of $50$ percent. Its cost of debt is $8$ percent, before taxes. If the tax rate is $34$ percent, what is the WACC?