QUESTION 9 Sorensen Systems Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is expected to grow at a constant rate of 5.0% a year, and the common stock currently sells for $50.00 a share. The before-tax cost of debt is 5%, and the tax rate is 52%. The target capital structure consists of 30% debt and 70% common equity. What is the company's WACC if all the equity used is from retained earnings? Answer as a percent and to the nearest hundredth of a percent as in xx.xx % and enter without the percent sign 10 po QUESTION 10 1 Keys Printing plans to issue a $1,000 10-year noncallable par bond with a 8.00% annual coupon, paid semiannually. The company's marginal tax rate is 40.00%, but Congress is considering a change in the corporate tax rate to 30.00%. By how much would the component cost of debt used to calculate the WACC change if the new tax rate was adopted? Answer as a percent and to the nearest hundredth of a percent as in xx xx % and enter without the percent sign