On December 31, 2005, XYZ had a stock price of $55. Calculate the return for XYZ Corp. over the previous year if the stock paid a dividend of $4 today (December 31, 2006), and the current stock price is $60.

	a.	16.36%
	b.	12.27%
	c.	18.49%
	d.	20.45%

XYZ Corp. has equity beta 1.8 and market value of equity $230 million. The required return on XYZs debt is 7.8%. The market value of that debt is $220 million and the face value is $203 million. The risk-free rate is 2% and the expected return on the market is 8.7%. What is XYZs WACC?

	a.	11.00%
	b.	10.70%
	c.	12.84%
	d.	12.54%
	e.	None of the above.