KALM Corporation has its common stock selling for $45/ share and the current dividend (D0) is $2.00/ share. If dividends are expected to grow at 7% per year for ever, then the firm's cost of retained earnings (equity) is: (approximately) 11.44% 12.22% 10.45% 11.76% A firm has a total market value of $100 millions. The market value of debt is $40 millions (that is 40% debt)and that of equity is $60 millions (That is 60% equity). The before tax cost of debt is 10% and the cost of equity is 15%. Calculate the weighted average cost of capital: (WACC) (Assume tax rate T=21% ) 13.0% 12.16% 11.8% 13.85%