4 You have the following information about ABC Corp Aset Bonds Preferred Stock Como Book 125.000,000 1.000.000 $12.500.000 Market value 530.000.000 $10.000.000 560.000.000 4.200 Constant growth on common stock YTM ons 6.SON Treasury bonded Price of common stock Tarrate Coupon rate on bondssemiannual coupon payments, but recall that coupon rates are ALWAYS stated on an annual bass Pisk premtos verbonds ped marketer Expected Common Dividendi Number of preshare Per share dividend on preferred 116 53.00 100.000 Step 1) sove for market weights for each type of capital Webt Step 2) solve for the after tax cost of debt Step 3) solve for the cost of preferred stock Name Step 4) solve for cost of common stock seachable method ) dividend valuation security marine and bond yeldriskpremium Calculate the appropriate cost of common stock based on the 3 estimates you have determined Kcom Step Finally, calculate the marginal cost of capital for this form MCC