7. In order to stay completive a company is changing their credit terms of sale from net 30 to 2/10, net 30. Explain the likely impact on sales, revenue and accounts receivable this will likely have. (3 points) 8. Whatley Inc. has a target capital structure consisting of 35'. debt 10%. preferred stock and 55% common equity The firm has 20-year, 8.4% semiannual coupon bonds that sell for $920.50. Whatley also has preferred stock that pays an 8.4% annual dividend (with a par value of $100) and sells for $75. Finally, Whatley plans to pay an annual dividend of $2 on its common stock that currently sells for $21 a share. Whatley's stock is a constant growth stock with a growth rate of 5%. Flotation costs on new common stock are 10%, and the firm's marginal tax rate is 25%. a What is Whatley's after-tax component cost of debt? (points) b. What is Whatley's component cost of preferred stock! c. What is Whatley's component cost of retained earnings? d Assume that Whatley can use their retained earnings to fund the equity portion of its capital budget, what is their WACC