Thompson Co. has a beta of 1.35. The market risk premium is 8.5%. Thompson's next annual dividend is expected to be $2.40, paid in each one year. Dividends are expected to grow at 6% per year indefinitely. The company's bonds have a coupon rate of 8% and are priced in the market at par value. The companys weighted average cost of capital (WACC) is 10%, and its tax rate is 25%. Thompson's current share price is $40 per share. What is Thompson's cost of equity capital? [Express your answer in percentage terms (58%), rounded to the closest whole number with no decimals] Cost of equity capital = % A. 14.23 B.12 C. 13.12 D. 9 What is Thompson's market value debt-equity (D/E) ratio? [Express your answer in DECIMAL terms (ie. 4.56), rounded to 2 (TWO) decimals places] D/E ratio = A. 0.5 B. 0.33 C. 0.25 D. 0.75