20. Calculating the WACC. In the previous problem, suppose that Parrothead Enterprises feels that it should have a capital structure of 25 percent debt, 5 percent preferred stock, and 70 percent equity. Assuming that the cost of each form of financing remains the same, what is Parrothead's new cost of capital? 21. Calculating the WACC. Calculate the cost of capital for the following firm: Debt: 8,000 9 percent coupon bonds outstanding, 25 years to maturity, and a quoted price of 104. These bonds pay interest semiannually, Common stock: 200,000 shares of common stock selling for $75 per share. The stock has'a beta of 1.1 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 7 percent per year indefinitely. Market: A 13 percent expected return, a 6 percent risk-free rate, and 35 percent tax rate. 20. Calculating the WACC. In the previous problem, suppose that Parrothead Enterprises feels that it should have a capital structure of 25 percent debt, 5 percent preferred stock, and 70 percent equity. Assuming that the cost of each form of financing remains the same, what is Parrothead's new cost of capital? 21. Calculating the WACC. Calculate the cost of capital for the following firm: Debt: 8,000 9 percent coupon bonds outstanding, 25 years to maturity, and a quoted price of 104. These bonds pay interest semiannually, Common stock: 200,000 shares of common stock selling for $75 per share. The stock has'a beta of 1.1 and will pay a dividend of $3.40 next year. The dividend is expected to grow by 7 percent per year indefinitely. Market: A 13 percent expected return, a 6 percent risk-free rate, and 35 percent tax rate