The dividend growth rate is expected to be 2.2% a year. Preferred stock sells for $178 and pays an annual dividend of $21. There are currently 20 year 5.77% coupon bonds, with a face value of $1,000, that pay semi-annual payments and are non-callable available at a price of $1,015.25. The bond-yield risk premium is 3%. The current risk free rate is .2% and the market risk premium is 5.7%. Clorox has a target capital structure of 30% debt, 7% preferred stock and 63% common equity. Clorox has a current stock price of $205.44 per share. The stock has a Beta of .56 and pays a dividend of $3.84 per year. Clorox has a tax rate of 20% Using the information provided about Clorox, what is Clorox's weighted average cost of capital? Using the Clorox information provided, what is their cost of common equity using the bond-yield - plus- risk premium method?