VersionB The following information applies to the nex stx problems You are given the following information concerning Around Town Tours Common stock: 265,000 shares of common stock selling for $76 per share. The stock has a bets of 0 92 and will pay a dividend of $2.48 next year. The dividend is expected to grow by 4 percent per year free rate is 4.5% and the market risk premium is 8 7% indefinitely The risk Preferred stock: 7.500 shares of preferred stock selling at $$8 per share and paying a S6 dividend per share Debt: 8,500 bonds outstanding, with 7.1 percent semiannual coupon rate, $1000 par value, 14 years to maturity, selling for 102.6 percent of par The corporate tax rate is 34 percent Round your answers to two significant digits.- 6. What is the firm's cost of equity according to the CAPM A. 7.26% B. 7.76% C. 7.81% D. 9.88% . 12.50% 7. What is the firm's cost of equity according to the dividend discount model? A. 7.26% B. 7.76% C. 7.81% D. 9.88% E. 12.50% 8. What is the cost of preferred stock? A. 3.22 percent B. 3.70 percent C. 4.49 percent D. 6.00 percent E. 6.82 percent