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 current price of $920. The bonds pay interest semiannually. - ABC Corp has perpetual preferred stock that pays a 5.5 percent preferred dividend and currently sells for $71 per share. - Company ABC has a Beta of 1.2 and the current risk-free rate is 4.3% and the market risk premium is estimated at 7.6%. 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 = %