Runtan Inc. has just paid an annual dividend of $0.45 per share. Analysts expect the firm's dividends to grow by 8% forever. Its stock price is $34.8 and its beta is 1.3. The risk-free rate is 2% and the expected return on the market portfolio is 8%. What is the best guess for the cost of equity? (Need to use both SML and constant growth methods to estimate cost of equity) 4+ decimals Terence Terraforming Inc. has a capital structure of 27% debt and 73% common stock. The expected return on the firm's debt is 5.4% (pre-tax) and the expected return on the firm's equity is 13%. The firm's marginal tax rate is 21%. What is the company's weighted average cost of capital? B+ decimals