(3) Youiare an assistant to the CFO and have collected the following data to conduct the analysis. - The company is subjected to a marginal tax rate of 35% - The company can issue a 20-year, 7.6\% semfannuat coupon bond at $1,219. New bonds would be privately placed with no floatation cost - The compsny's preferred stock currentlyselts for $30 per share. It pays a foxed dividend of $1.8 per share. - The company's common stock currently sells for $40 per share. The most recently paid dividend was 51 per share. Dividends are expected to grow at a constant rate of 5% in the foresceable future. - A flotation cost of 10x would be required to issue new common stock. - The company's stock beta is 1.875 , the market risk premium is 3% and the risk-free rate is 2%6. - The company's capital structure consists of 30% debt, 5% preferred stock, and 65% common equity. (1) Estimate the cost of the following capital components - Cost ofocbt - Cost of Pricterred Stock - Cost of Retained Earnirgs-bosed on DCF approach - Cost of Retained Earnings-based on CAPM opprooch - Cost of New Common Stock w based on DCF approoch (2) Calculate the firm's WACC. assuming it does not want to issue new common stock (3) Cakulate the firm's WACC, assuming the firm expands so rapidly that it must issue new common stock