I only meant to post question 12, please disregard #10.

D Question 10 1 pts Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; Po = $45.00; 8 = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock? 7.96% 9.94% O 8.99% 7.72% 6.28% Question 12 1 pts Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1 - $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $65.00 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings? 7.67% 7.31% O 7.17% 8.67% 6.16%