XYZ, Inc. just paid an annual per share dividend of $3.50. Dividends are expected to grow at a rate of 3% per year from here on out. If the risk-free rate is 2.5%, the expected return on the market is 7% and the beta of the stock is 2, what is the most that you should be willing to pay for a share of this stock today? $45.91 $41.18 $42.41 $26.70 QUESTION 2 Lewis runs an outdoor adventure company and has the following financing patter: Equity: 75% and cost of 14% Debt: 25% and cost of 11% What is the WACC for Lewis if the tax rate is 40%? 13.25% 9.05% 11.60% 12.15%