The Down and Out Co. just issued a dividend of $2.60 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, the company's cost of equity is

options: 10.83% 11.82% 12.79% 9.41% 14.26%

Mullineaux Corporation has a target capital structure of 70 percent common stock, 10 percent preferred stock, and 20 percent debt. Its cost of equity is 13 percent, the cost of preferred stock is 3.5 percent, and the cost of debt is 7 percent. The relevant tax rate is 35 percent. Mullineaux's WACC is

options: 10.36% 11.28% 12.41% 11.67% 10.82%