please answer both parts to question b

4 Points Question 8 A firm has free cash flows of $550 million per year. The free cash flows are growing at 6%. The weighted average cost of capitalis 9%. If the firm has 55 billion in debt, and 800 million common shares outstanding what should be the fair stock price? A $32.50 B $18.04 $27.78 $56.50 A company has Beta of 1.5. The return on the market is 11%, and the risk free rate is 3%. What is the cost of common stock (cost of equity capital for this firm? 14% 15% 6% 7%