1. A firm finances with 30% debt, 5% preferred stock, and the remainder as common stock. The after-tax cost of debt is 4%, the after-tax cost of preferred stock is 9%, and the after-tax cost of equity is 13%. If the tax rate is 20%, find the WACC for this firm

2.

A firm finances with 20% debt, 50% equity, and the remainder as preferred stock. The before-tax cost of debt is 7%, the before-tax cost of preferred stock is 10%, and the before-tax cost of equity is 16%. If the tax rate is 20%, find the WACC for this firm.