4. The ABC Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below Total liabilities $ 40,000,000 Total shareholders' equity 80.000.000 Total liabilities and shareholders' equity $120.000.000 The stock is currently selling for $25.00 per share, and its noncallable $1.000 par value, 20 year, 7.25% bonds with annual payments are selling for $875.00. The expected dividend is $150 and dividend grows at a constant rate of 75%. The flotation cost of issuing new stock is 6%. The firm's tax rate is 40% What is the best estimate of the after-tax cost of debt? b. Based on the DCF, what is the firm's cost of retained earnings? What is the best estimate for the weight of debt for use in calculating the firm's WACC? d. What is the firm's WACC the firm uses the retained earnings finance the equity to maintain the current capital structure? a