A. Torch Industries can issue perpetual preferred stock at a price of $55.00 a share. The stock would pay a constant annual dividend of $4.50 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places.   = %_______   B. The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 8%, and its marginal tax rate is 25%. Assume that the firm's long-term debt sells at par value. The firm’s total debt, which is the sum of the company’s short-term debt and long-term debt, equals $1,180. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Assets   Liabilities And Equity Cash $ 120   Accounts payable and accruals $ 10 Accounts receivable 240   Short-term debt 60 Inventories 360   Long-term debt 1,120 Plant and equipment, net 2,160   Common equity 1,690 Total assets $2,880   Total liabilities and equity $2,880 Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations.Round your answer to two decimal places.= %__

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