3. New Venture company's bond have a 6% coupon rate, pay annually and will be sold at par. Common stocks are currently selling at $50 a share, with 10% fee for new issue dividend will be $1.5/ share (D 1 = $1.5) and expected grow at 5% for foreseeable. Retained earnings are available for capital finance too. The marginal corporate tax rate is 21%. 1. What is after tax cost of bond financing? 2. What is cost of the new equity financing and the cost of retained earning financing? 3. Calculate WACC if company engaged in 20% new equity, 20% retained earning and 60% bond financing