4) (7 pts) You are given the following information concerning ABC Corp. The current capital structure of ABC Corp consists of 25% Debt, 5% Preferred Stock and 70% Equity. ABC has a current corporate tax rate of 22% The company has a 6.2 percent coupon bond ($1000 Face Value) with 15 years to maturity is currently selling for $1046. The bonds pay interest semiannually. ABC Corp has perpetual preferred stock that pays a 5.8 percent preferred dividend and currently sells for $80 per share. Company ABC has a Beta of 1.2 and the current risk-free rate is 1.6% and the market risk premium is estimated at 8%. a) What is the before tax cost of debt for the firm ? % b) What is the cost of preferred stock for the firm? % c) What is the cost of equity for the firm using the CAPM? d) What is the WACC for ABC Corp? WACC = % %