R7: Suppose a company's stock currently sells for $60 per share and that a dividend of $3 was just paid. If it's the company's policy to always maintain a constant growth rate of five percent in its dividends, what is the cost of common equity or required return on the stock? R8: Western Co has 20,000 shares of common stock outstanding at a price per share of S50 and a rate of return of 12 percent. The firm has 5,000 shares of seven percent preferred stock outstanding at a price of $40 a share. The outstanding ten percent coupon debt has a total face value of $350,000 and currently sells for 102 percent. The yield-to-maturity on this debt is cight percent. What is the firm's WACC of capital if the tax rate is 34 percent