Problem 3 It is Jan 1, 1997, Normal America Inc. (NA) has paid a year-end dividend for each of the last ten years as shown below: (Sheet1 template provided) \begin{tabular}{|c|c|c|} \hline Year & c. 31 stock pri; & er sh \\ \hline 1986 & 33 & \\ \hline 1987 & 30.69 & 2.5 \\ \hline 1988 & 35.38 & 2.5 \\ \hline 1989 & 42.25 & 3 \\ \hline 1990 & 34.38 & 3 \\ \hline 1991 & 36.25 & 1.6 \\ \hline 1992 & 32.25 & 1.4 \\ \hline 1993 & 43 & 0.8 \\ \hline 1994 & 42.13 & 0.8 \\ \hline 1995 & 52.88 & 1.1 \\ \hline 1996 & 55.75 & 1.6 \\ \hline \end{tabular} S\&P 500 return a) Calculate NA's with respect to S\&P 500. (5 points) c) Assume that NA's cost of debt is 8%. If the company is financed by 1/3 equity and 2/3 debt, what is the WACC using each of the two CAPM models? (7 points)