Estimating Cost of Debt Capital Assume the December 31,2010 , partial financial statements taken from the annual report for AT\&T (T) follow. (a) Explain what AT\&T's market beta implies regarding its stock price volatility. It implies that the stock of AT\&T is a very volatile stock. It implies that the stock of AT\&T is a very stable stock. It implies that the stock of AT\&T moves the same as the market index. (b) Assume the market premium equals: 5.2% and that the risk-free rate equals: 3.1% Estimate AT\&T's cost of equity capital using the CAPM model. (Round to one decimal place.) % Round your computation for the intrinsic value of equity to nearest million; then do not round until your final answer. Round final answer to one decimal place. WACC =%