A. Ped Manufacturieg Company is trying to calculabe its cost of capital for use in maving a capital budgeting decision. Mr. Seter, the vice-president of finscice, has given you the following informition ard has askied you to compule the woighted avernge cost of capital. The eompany ourtenty hos outusnding a bood with a 9.8 percent coupen race and another bond witt an 7.4 percent rate. The firm has been informed by its investmemt banker that bonds of equol elsk and credit rating are naw seling to yloid to 7 percent. The cominon stock has a price of $52 and as expected dividend (0y of $1,72 per shise. The historical growth patteen figl for divitends is as follows: The preferted stock is seling . $72 per share and pays a distdend of $6.80 per shme. The corporate tax rate is 30 percect. The flotation cost is 25 percent of the seiling price for preferred stock. The epemum cigtal structure for the firm is 25 percent debt. 15 perceet prefiched stock, and 60 percent corwmon equity in the form of retained eamings a, Compute the twerage Ristorical growit rase, (Do not round intermediate calculations. Round your answer to the neareat whole percent and use this value as 9 . Input your answer as a whole percent.) h. Comoute the com of cacred for the indiridual comoonents in the caplal structire. Ise the reunded whole owicent comovied in b. Compute the cost of copital for the individual components in the capital structure. (Use the rounded whole percent conputed in part a for 9 . Do not round any other intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) c. Calculate the welghsed cost of each scurce of capital and the weighsed wverage cost of capital (Do not round intermediate calculations, Input your answers as a percent rounded to 2 decimal places.)