You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 3.53%, the cost of preferred is 8.05%, and the cost of retained earnings is 14.67%. The firm will not be issuing any new stock. What is its WACC? Your Answer: Answer Question 2 (2 points) Sorensen Systems Inc. is expected to pay a $2.50 dividend at year end (D1=$2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 6% debt and the rest common equity. What is the company's WACC if all the equity used is from retained earnings? Your