Fred's Lawn and Garden's last dividend per share was $1.05. The stock sells for $20 per share, and the expected growth rate for the company is 7%. Calculate the company's cost of equity. What is the company's cost of equity? % (Round to two decimal places.) Colt Manufacturing has two divisions: 1) pistols; and 2) rifles. Betas for the two divisions have been determined to be beta (pistol) = 0.5 and beta (rifle) = 1.1. The current risk-free rate of return is 5%, and the expected market rate of return is 10.5%. The after-tax cost of debt for Colt is 2.5%. The pistol division's financial proportions are 40.0% debt and 60.0% equity, and the rifle division's are 50.0% debt and 50.0% equity. a. What is the pistol division's WACC? b. What is the rifle division's WACC? a. What is the pistol division's WACC? % (Round to two decimal places.)