QUESTION 1 Dashy-Paints Corporation has a target capital structure of 45% debt, 15% preferred stock, and 40% common stock. Its before-tax cost of debt is 8.5%, preferred stock cost is 10.2%, and its marginal tax rate is 40%. The current stock price is $22.00. The last dividend was at 3.25, and is expected to grow at a 5% constant rate. What is the firm's WACC? 10.1696 11.32% 13.00% 12.03% 13.56% QUESTION 2 Suppose Crocodella's stock has a beta of 0.57. If the risk-free rate is 3% and the expected rate of return on the market is 8%, what is Crocodella's cost of equity capital? O 5.8596 17.85% 7.56% 5.4296 28.5696