A) find the cost of common equity.

B) solve for the cost of preferred stock.

C) solve for the before tax and after tax cost of debt.

D) calculate the weights of equity, debt, and preferred stock

Question 17 ) Use the fol ormation to solve questions 17-27You are the CFO of Micro Spinoff Inc. The company has 600,000 shares of common stock outstanding at a market price of $60 a share. Micro Spinoff hat paid an annual dividend in the amount of $5.00 per share. The dividend growth rate is 5 percent annually, Micro Spinof also has 18,000 bonds ou face value of $1,000 per bond that is selling at 102.4 percent of par. The bonds have a 7.25 have 3 years to maturity. Finally, the firm has 75,000 shares of pay dividend of 8.00 percent on its par value of $50. percent coupon, pay preferred stock outstanding at a market price of $40 a share. Preferred stocks interest ly, and The firm is considering a three-year expansion project (same operations as the existing projects of the firm) that requires an initial investment in a machine of $200,000. The increase in Net Working Capital (NWC) at time 0 is $10,000 that will be reduced to normal levels at the end of the project at time 3. The machine has a life of 5 years and will be depreciated to 0 using straight-line method. The Taxes Depreciation and Amortization (EBITDA) in the first year is $80,000 and this will grow at 5 percent a year. At the end of the project (year 3), the machine can be sold for $60,000. The firm's tax rate is 21 percent. Find the cost of common equity? Paragraph