1) You are given the following information concerning ABC Corp. The current capital structure of ABC Corp consists of 25% Debt, 5% Preferred Stock and 70% Equity, ABC has a current corporate tax rate of 25% The company has a 5.6 percent coupon bond ($1000 Face Value) with 10 years to maturity and a quoted price of 94.2. The bonds pay interest semiannually. . ABC Corp has perpetual preferred stock that pays a 5.3 percent preferred dividend and currently sells for $76 per share. Company ABC has a Beta of 1.2 and the current risk-free rate is 2.1% and the market risk premium is estimated at 8%. . a) What is the before tax cost of debt for the firm ? b) What is the cost of preferred stock for the firm? c) What is the cost of equity for the firm using the CAPM? What is the WACC for ABC Corp? WACC