4. The capital structure of Global Motors is as follows: 55% common stock; 10% preferred stock; and 35% long term debt. The expected risk premium of Global Motors stock vs. US long-term Govt bonds is 7.5%. The 20-year US long-term Govt. default-free bond yield is 6.0%. The companys credit rating is A- and the credit spread for 20-year A- corporate debt is 1.0%. Global Motors tax rate is 30%. The company recently issued preferred stock with a par value = $60/share that pays a 12% dividend yield. Issuance costs were 2.5% of par. Must show calculations (15 pts) a. What is Globals cost of equity (retained earnings)? (3 pts) b. What is Globals pre-tax and after-tax cost of debt? (2 pts) c. What is Globals cost of preferred stock? (3 pts) d. The company is considering expanding its operations in the US and wants to determine its all-in capital cost based on its weighted average cost of capital (WACC). Calculate the companys WACC using the above information. (3 pts)