1. The capital structure for Mills Corporation is shown below. Currently, flotation costs are 13% of market value for a new bond issue and $3 per share for preferred stock. The dividends for common stock were $2.50 last year and have an estimated annual growth rate of 6%. Market prices are $1,050 for bonds. $20 for preferred stock, and $40 for common stock. Assume a 34% tax rate. Financing Type Bonds (8%, $1k par, 16 year maturity) Common equity Preferred stock (5k shares outstanding. $50 par, $1.50 dividend) Total % % of Future Financing 36% 45% 19% 100% Compute the company's WACC. 2. The Milton Company plans to issue preferred stock. Currently, the company's stock sells for $120 issued, the Milton Company would receive only $99 (due to flotation costs). The dividend rate is 12%, and the par value of the stock is $100. Compute the cost of capital of the stock to your firm. Show all work. 3. The Dayton Corporation is considering a new investment, which would be financed from debt. Dayton could sell new $1k par value bonds at a new price of $950. The bonds would mature in 15 years, and the coupon interest rate is 10%. Compute the after-tax cost of capital to Dayton for bonds, assuming a 34% tax rate. Show work