Question 19 (5 points) Kimberly Beauty is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $51.50 a share. The before-tax cost of debt is 6.10%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings? Do not round your intermediate calculations. (Multiple Choice) 7.79% 5.69% 5.06% 6.66% 6.81% Question 20 (5 points) Scanton Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 0.80. Based on the CAPM approach, what is the cost of equity from retained earnings? (Multiple Choice) 5.02% 8.30% 9.25% 7.00% 7.78%