9-3: The company finance structure is 25% bonds, 10% preferred stock, and 65% common stock. The bonds each have a face value of $1,000, selling at a discount of $35 today, with maturity in 10 years, annual coupon interest of 8%, and flotation cost of 2.5%. The company's tax rate is 34%. The preferred stock has a 7% annual dividend and par at $100, which can be sold today for $85. Underwriter fees for the sale would be $2 per share. New common stock is selling at a current price of $45 per share. The expected dividend for 2020 is $3.60. Dividends have grown at a consistent rate as shown in the chart below. To attract buyers, management will underprice shares by $4, and flotation costs will be $2.50 per share. Dividend payouts are expected to continue at the constant growth. Year 2019: $3.46 Dividend Year 2018: 3.33 Year 2017: 3.20 Year 2016: 3.08 Year 2015: 2.96 (A) Calculate the after-tax cost of debt for the bond issue. (B) Calculate the cost of the preferred stock issue. (C) Assuming that expected and required returns are equal (rs = rr), calculate the cost of the new common stock issue. (D) Using the finance structure of the firm, calculate the after-tax weighted average cost of capital (WACC).