Use the following information for the next 2 questions:

4. Ddudu Inc. has $40,000 in debt and $60,000 in equity. They just paid $4 dividend, it was $2.75 four years ago. Their current stock price is $100. Their before-tax cost of debt is 6%. Tax rate is 21%.

What is its cost of equity?

	14.21%
	18.47%
	7.33%
	9.82%

5.What is Ddudu's cost of capital?

	5.78%
	8.11%
	10.42%
	10.93%