1. Jamson inc has 1,500 bonds outstanding with a $1,000 par value, a yield to maturity of 6.4 percent, and a market price of $989 each. The firm also has 74,000 shares of common stock outstanding at a price per share of $35 and a beta of 1.08. The risk-free rate is 2 percent, the market risk premium is 7 percent, and the tax rate is 34 percent. What is the company's WACC?

2. Assume the S&P 500 has a dividend yield of 3.2 percent. Analysts expect overall dividends to grow at 5.4 percent annually. Treasury bills yield 2.1 percent. The expected market rate of return is ____ percent, and the market risk premium is ____ percent.