Using the Clorox information provided, what is their cost of common equity using the DCF method? A. 4.76% OB. 4.52% C. 4.45% D.4.11% QUESTION 11 Using the Clorox information provided, what is their cost of common equity using the bond yield-plus-risk premium method? A.5.42% B.6.77% OC 7.51% D.8.64% Clorox Clorox wants to pursue a project that will broaden the markets in which they currently participate. They want to know what they should use for a hurdle rate or WACC (weighted average cost of capital). You get the following information from their accountant: The dividend growth rate is expected to be 2.2% a year. Preferred stock sells for $178 and pays an annual dividend of $21. There are currently 20 year 5.77% coupon bonds, with a face value of $1,000, that pay semi- annual payments and are non-callable available at a price of $1,015.25. The bond-yield risk premium is 3% The current risk free rate is .2% and the market risk premium is 5.7%. Clorox has a target capital structure of 30% debt, 7% preferred stock and 63% common equity. Clorox has a current stock price of $205.44 per share. The stock has a Beta of.56 and pays a dividend of $3.84 per year. Clorox has a tax rate of 20% Using the information provided about Clorox, what is Clorox's weighted average cost of capital? A. 4.55% B.5.57% OC. 6.32% OD.7.11%