Use the following data to answer Questions 1 through 3. . A company has a target debt-equity ratio of 0.667 The company's bonds with face value of $1,000 pay a 10% coupon (semiannual), mature on 20 years, and sell for $849.54 with a yield to maturity of 12%. The company stock beta is 1.2. Risk-free rate is 10%, and market risk premium is 5%. The company is a constant-growth firm that just paid a dividend of $2, sells for $27 per share, and has a growth rate of 8%. The company's marginal tax rate is 40%. If the company has a debt-to-equity ratio of 0.667, it will have $0.667 in debt for each $1.00 in equity. V= debt + equity = 0.667+1 = $1.667. 1. The company's after-tax cost of debt is: * O A. 7.2%. B. 8.0% O C. 9.1%. O D. 7.0% E. None of the above 2. The company's cost of equity using the dividend discounted model is: * A. 15.4%. B. 16.0%. C. 16.6% D. 16.9%. E. None of the above 3. The company's weighted average cost of capital (using the cost of equity from CAPM) is closest to: A. 12.5% B. 13.0%. C. 13.5% O D. 15.0%. ! O E. None of the above