Consider a firm whose debt has a market value of $600 million and whose stock has a market value of $400 million. The firm pays a 10% rate of interest on its new debt. The corporate tax rate is 40%. Assuming that the cost of equity is 20%, what is this firm's WACC? AAA Inc. is expected to pay a dividend of $7 per share at the end of the year. The stock sells for $100 per share, and its required rate of return is 10%. The dividend is expected to grow at some constant rate forever. What is the equilibrium expected growth rate?