1. A) Melta Steel Co., a large producer of steel items, is planning to raise funding through issuance of debt. The company is planning to sell $5million worth of 10-year, 8% coupon bonds with a par value of $1000. Flotation costs are 3% and the selling price is $950. Calculate the cost of debt (before tax) for the company (using the approximation method). B) Melta Steel Co. will also issue preferred stock which is expected to sell for $73 per share. The cost of selling is expected to be $4 per share. The dividend rate is 10% of the value of each share. Calculate the cost of issuing preferred stock for the company. C) The financial advisors of the company indicate that the risk-free rate and the market return, , are 3.5% and 8% respectively. The beta of the company is 0.92. Estimate the cost of common stock equity using the Capital Asset Pricing Model. D) The company is planning its capital structure to be: proportion of long-term debt - 30%; proportion of preferred stock - 12%; proportion of common stock equity -58%. Calculate the weighted average cost of capital for Melta Steel Co. based on your calculations made above