1. Compute the weighted average cost of capital for RIC Inc. using the following information: RIC Inc. has decided to finance this product line expansion by raising new capital. The company's optimal capital structure calls for 35% debt, 40% equity, and 25% preferred stock. RIC Inc. can issue a series of 8% coupon bonds with a $1000 par value. The bonds will mature in 10 years and will sell for $946 minus an issuance cost of $5. RIC Inc.'s marginal tax rate is 35%. RIC Inc.'s common stock is currently selling for $22 per share. Its present dividend is $1.96 a share and the expected long-term dividend growth rate is 8.5%. What is the cost of external equity for RIC Inc. assuming an issuance cost of $2.00 per share? RIC Inc. has just issued shares of preferred stock that pay an annual dividend of $2.15. The preferred stock was sold to the public at a price of $52.00 per share with issuance cost of $2.00 per share. What is the marginal cost of preferred stock for RIC Inc