A Company is Calculating cost of capital for major expansion progran Financing Conditions are as follows: Tax rate 25% - 15-year, 12% coupon, semiannual payment noncallable bonds sell for $1,153.72 (YTM=10\%). New bonds will be privately placed with no flotation cost. - 10\% dividend, $100 par value, perpeutal preferred stock sells for $111.10. - Company's beta is 1.2, Risk free rate is 7%, Market risk premium is 6% - Target Capital Structure: 30% debt, 10% preferred, 60% common equity 11. What is the cost of preferred stock? 12. What is the cost of common stock (using CAPM, no flotation cost)? 13. What is the company's WACC