Spacely Sprockets common stock is currently priced at $75.00 a share. The company just paid $1.13 per share as its annual dividend. The dividends have been increasing by 1.75 percent annually and are expected to continue doing the same. What is this firm's cost of equity? a) 4.20 % b) 4.39% -) 2.14% ) 3.28 % e) Not enough information given 35) Oceanic Airlines has a target capital structure of 60 nere as a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 10 percent. the deot. Its cost of equity is 10 percent the cost of preferred stock is 7 percent, and the pre- tax cost of debt is 5.25 percent. What is the firm's WACC given a tax rate of 35 percent? a) 10.31% b) 9.72 % c) 9.98 % d) 10.38 % e) 7.54%