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has an issue of 2 million preferred shares outstanding with a market price of $15.00 per share. The preferred shares pay an annual dividend of $1.20. Ivanhoe also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 4 percent per year forever. If Ivanhoe is subject to a 28 percent marginal tax rate. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) Problem 13.24 a1-a5 (Excel Video)(a1) Your answer is correct. Calculate the weights for debt, common equity, and preferred equity. (Round final answers to 4 decimal places, e.g. 1.2514.) Debt Preferred equity Common equity eTextbook and Media Attempts: 1 of 3 used Problem 13.24 a1-a5 (Excel Video)(a2) X Your answer is incorrect. Calculate the cost of debt. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25\%.) Cost of debt % Calculate the cost of preferred equity. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%. \% Calculate the cost of common equity. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 0 decimal places, e.g. 15\%.) Cost of common equity % What is the firm's weighted average cost of capital? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25\%.) WACC \% Sandhill Rocket paid an annual dividend of $1.30 yesterday, and it is commonly known that the firm's management expects to increase its dividend by 12 percent for the next two years and by 2 percent thereafter. If the current price of Sandhill's common stock is $15.86, what is the cost of common equity capital for the firm? (Do not round intermediate calculations. Round answer to 0 decimal places, e.g. 15\%.) Cost of common equity %