Suppose Wacken, Limited, just Issued a dividend of $2.59 per share on its common stock. The company pald dividends of $225, $2.34, $2.41, and $2.52 per share in the last four years 8. I the stock currently sells for $70, what is your best estimate of the company's cost of equity capital using the arithmetic average growth rate in dividends? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal plece, e.g., 3216.) e. What if you use the geometric average growth rate? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % b. Cocotout Jiminy's Cricket Farm issued a bond with 30 years to maturity and a semlannual coupon rate of 4 percent 2 years ago. The bond currently sells for 107 percent of its face value. The company's tax rate is 21 percent a. What is the pretax cost of debt? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216.) b. What is the aftertax cost of debt? (Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216.) % a. Pretax cost of debt % b. Aftertax cost of debt c. Which is more relevant, the pretax or the aftertax cost of debt? Aftertax cost of debt ont fant