You are a finance Intern at Chambers and Sons. They have asked you to help estimate the company's cost of common stock if they need to sell new shares of common stock. You obtained the following data: D1 = $1.55; PO = $27.50 -5.00% (constant); and F = 6.00%. What is the cost of stock if the firm issues new common stock? 11.4496 10.64% 12.84% 11.00% 10.23% Quinlan Enterprises stock trades for $52.50 per share. It is expected to pay a $2.50 dividend at year end (D1 - $2.50), and the dividend is expected to grow at a constant rate of 5,50% a year. The before-tax cost of debt is 8.50%, and the tax rate is 40%. The target capital structure consists of 40% debt and 60% common equity. What is the company's WACC if all the equity used is from retained earnings (so the firm does not have to issue new shares of common stock)? 7.07% 7.36% 8.00% 8.20% 8.29%