3. Hobbiton Inc's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.0 annual preferred dividend. What is the firm's cost of preferred stock? Several years ago, the Company sold a $1,000 par value, non-callable zero-coupon bond that now has 20 years to maturity. The bond currently sells for $725, and the company's tax rate is 40%. What is the component cost of debt for use in the WACC calculation? Assume that the company hired you as a consultant to help estimate its cost of capital You have obtained the following data: Do = 0.90; Po = $27.50; and g = 7.00 % (constant). What is the cost of equity from retained earnings? If the capital structure is 60% common equity, 30% debt, and 10% preferred equity, then what is the WACC