Company ABC is looking to figure out its cost of equity. The company operates in the construction business where, based on a list of comparable firms, the average beta is 0.9. The comparable firms have an average debt-to-equity ratio of 0.5. Company ABC has a debt-to- equity ratio of 0.25 and a 30% tax rate. What is the ABC's Beta? O a. 0.9 O b. 0.67 O c. 0.25 O d. 0.79 Mumbai Ltd. expected to pay dividends of 2 for the next year. As the company is a market leader with a good future, the dividend is likely to grow by 5% every year. The equity shares are now traded at 80 per share in the stock exchange. The tax rate applicable to the company is 50%. The capital structure of the company also contains debt on which interest is payable @ 14%. The capital structure has a ratio of Equity & Debt 80:20. WACC = ? O a. 8.40% O b. 7.40% O c. 9.40% O d. 7.98%