3. Alchemy Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 5 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $1.000. The firm could sell, at par, $100 preferred stock which pays a 6 percent annual dividend. Alchemy's beta is 1.2, the risk-free rate is 1.5 percent, and the market risk premium is 6 percent. Alchemy is a constant-growth firm which just paid a dividend of $1.50, sells for $27.00 per share, and has a growth rate of 3 percent. The firm's marginal tax rate is 25 percent. a. What is the firm's component cost of debt? b. What is the firm's' cost of preferred stock? c. What is firm's cost of common stock (rs) using the CAPM approach? d. What is the firm's cost of common stock (rs) using the DCF approach? e. What is Alchemy's WACC