Question 18 5 pts The Doug and Bob Corporation is calculating its WACC. Its 1,000,000 bonds have a 7% coupon, paid semi-annually, a current maturity of 25 years, and sell for a quoted price of 115. The firm's 1,800,000 shares of preferred stock (par $100) pays a 7.5% annual dividend and currently sells for $95. Doug and Bob is a constant growth firm which just paid a dividend of $2.00 (D.), sells for $30.00 per share; it has 80,000,000 shares outstanding, and the common stock has an estimated growth rate of 7%. The firm's beta is 1.6, and the firm's marginal tax rate is 20%. The market risk premium is 7% and the risk free rate is 5%. What is the firm's after-tax cost of equity financing if we use the SML (CAPM)? O 11.20% O 16.20% O 12.96 O 13.67% O 14.13% Question 19 5 pts The Doug and Bob Corporation is calculating its WACC. Its 1,000,000 bonds have a 7% coupon, paid semi-annually, a current maturity of 25 years, and sell for a quoted price of 115. The firm's 1,800,000 shares of preferred stock (par $100) pays a 7.5% annual dividend and currently sells for $95. Doug and Bob is a constant growth firm which just paid a dividend of $2.00 (D.), sells for $30.00 per share; it has 80,000,000 shares outstanding, and the common stock has an estimated growth rate of 7%. The firm's beta is 1.6, and the firm's marginal tax rate is 20%. The market risk premium is 7% and the risk free rate is 5%. What is the firm's after-tax cost of equity financing if we use the discounted cash flow approach (Gordon Growth model)? O 16.20% O 11.30% O 14.13% O 13.67% O 16.20%