The following information concerns questions 47-48. A company plans on financing major new expaneion programa by drawing on funds in the following proportions that roughly cotrenpond to its curteme capital structure: Issuing and underwriting expensea can be ignored. Debt can be issued at a coupon rate of 12 percent, and the required return on preferred sharen would be 9 percent. Common shares currently trade at $45 per share. Next year's dividend in expected to be $2.25 per share. Management feels that, over the long run, growth in dividends should be about 10 percent per year. The corporate tax rate is 40 percent. 47. Given the above information, what is the cost of common equity? A. 17%. B. 16%. C. 15%. D. 13%. E. none of the above. 48. Given the above information, what is the firm's WACC? A. 13.78%. B. 13.24%. C. 12.25%. D. 11.32%. E. none of the above