1. What is the Cost of Debt if the tax bracket is at 30%? 2. What is the cost of preferred? 3. What is the cost of equity? 4. What is the WACC?

Debt: the firm can raise an unlimited amount of debt by selling Php100,000,8 percent coupon interest rate, selling for 97%, 20 year bonds on which annual interest payments will be made. The firm must also pay underwriting fees of Php300 per bond. Preferred. The firm can sell 8 percent preferred stock at its Php 100-per share value. The cost of issuing and selling the preferred stock is expected to be Php15 per share. Common stock. The stock is currently selling for Php90 per share. The firm expects to pay dividends of Php 7 per share next year. The firm's dividends have been growing at an annual rate of 6 percent, and this is expected to continue in the future. The stock will be underpriced by Php? per share, and flotation costs are expected to amount to Php5 per share. Source of capital Weight Longterm debt 30% Preferred Stock 20% Common stock 50%