Judy's Boutique just paid an annual dividend of $2.41 on its common stock. The firm increases its dividend by 3.20 percent annually. What is the company's cost of equity if the current stock price is $38.68 per share?

a- 8.91%

b-9.17%

c-9.43%

d-10.00%

e-9.63%

The Two Dollar Store has a cost of equity of 10.9 percent, the YTM on the company's bonds is 5.6 percent, and the tax rate is 40 percent. If the company's debtequity ratio is .45, what is the weighted average cost of capital?

a- 8.56%

b-9.13%

c-5.70%

d-8.21%

e-7.53%