The outstanding bonds of Dane Corp. have ten years to maturity, 6.50% coupon rate, annual coupon, and a price of $93 per $100 face value. What is the estimate of the pretax cost of debt if the tax rate is 30%? 7.37% 6.60% 5.16% 5.26% 4.62% 7.52% Your estimate of the market risk premium is 8%. The risk-free rate of return is 1.5% and the stock of Southwest Airlines (LUV) has a beta of 1.26. What is Southwest Airlines' cost of equity capital under these assumptions? 9.89% 10.76% 11.58% 9.69% 0 10.08% 0 10.98%