1- Parry Co. has a capital structure, based on current market values, that consists of 35 percent debt, 9 percent preferred stock, and 56 percent common stock. If the returns required by investors are 8 percent, 10 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Parry's after-tax WACC? Assume that the firm's marginal tax rate is 28 percent.

(Do not round intermediate calculations. Round answer to 1 decimal place, eg. 15.2%)

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2- Hasta la Vista Inc's common shares currently sell for $30 each. The firm's management believes that its shares should really sell for $54 each. If the firm just paid an annual dividend of $2 per share and management expects those dividends to increase by 8 percent per year forever (and this is common knowledge to the market), What is the current cost of common equity for the firm?