3. Market Values: Equity Debt Preferred 40 million 20 million 1 million Cost of Capital the tax rate is 40% Bond Price 970 Years = 4 Coupon Payment 7% Bond is semi-annual with 3% floatation cost Dividend 0 was $2. Dividends are growing at 6%, the price is 22 with a 5% floatation cost Preferred dividend = $3 Preferred stock price = $50 with 4% floatation cost. Find the weighted cost of capital