Problem 1: Stock in Country Road Industries has a beta of 0.85. The market risk premium is 8%, and T-bills are currently yielding 5%. The company's most recent dividend was $1.60 per share, and dividends are expected to grow at a 6% annual rate indefinitely. If the stock sells for $37 per share, what is your best estimate of the company's cost of equity? Make sure you use both the dividend growth model and the CAPM (take the average). Use the cost of equity from Problem 1. If the cost of debt is 8%, and debt is 20% of the capital structure what is the WACC if the tax rate is 30%