I assume k, because you need the cost of equity. But want to make sure.
for this exam i’m sure it’s just k, k is also part of WACC
for using k, it is only because you usually use dividend discount model to price a stock in general, match the rate with the type of cash flow you are using to price the stock e.g. dividend =>k FCFF => wacc FCFE => k
k = cost of common equity? I didn’t study with Schweser, but I assume thats what you mean.
WAAC is the average (overall) cost of capital of the company. If the company takes on risker or less risker than WACC projects, then WAAC must be adjusted. k - is cost of equity only (excluding cost of debt or cost of preferred shares).