Home Depot Inc has 10,000 bonds outstanding that are selling for $950 each, 250,000 shares of preferred stock with a market price of $50 a share, and 300,000 shares of common stock valued at $45 a share. What weight should be assigned to the common stock when computing the firm's weighted average cost of capital?

Dollar General Inc.'s common stock is currently priced at $22.50 a share. The company just paid $2.50 per share as its annual dividend. The dividends have been increasing by 5.0 percent annually and are expected to continue doing the same. What is this firm's cost of equity?