The standard deviation of stock returns for Stock A is 40%. The standard deviation for the market return is 20%. If the correlation between Stock A and the market is .70, what is the Stock A's beta?

= .40/.20 (.70) = 2 (.70)= 1.4 beta

Great Expectations Co. has a target capital structure of 60% common stock, 5% preferred stock and 35% debt. Its cost of equity is 12% and the cost of preferred stock is 5%, and the pretax cost of debt is 7%. The firm's tax rate is 35%

What is the firm's WACC?