Cost of Equity: Dividend Growth: Summerdahl Resort's common stock is currently trading at $33 a share. The stock is expected to pay a dividend of $2.25 a share at the end of the year (D₁ = $2.25), and the dividend is expected to grow at a constant rate of 4% a year. What is the cost of common equity? Round your answer to two decimal places. %

Cost of Equity: CAPM Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 7%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. %

WACC: Shi Import-Export's balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 25%, r_d = 6%, r_ps = 7.1%, and r_s = 11%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? Round your answer to two decimal places. %