a. the after-tax cost of debt, using the approximation formula, is: % (round to two decimal places)

b. the cost of preferred stock is: % (round to two decimal places)

c. the cost of common stock is: % (round to two decimal places)

d. the firm's WACC is: % (round to two decimal places)

Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following Calculation of individual costs and WACC data. The firm is in the 35% tax bracket. Debt The firm can raise debt by selling $1,000 par value, 8% coupon Interest rate, 15-year bonds on which annua interest payments wil be made. To sell the ssue. an average discount of $20 per bond would have to be given. The firm also must pay flotation costs of $35 per bond Preferred stock The firm can sell 7.5% preferred stock at its $95-per-share par value. The cost of issuing and selling the preferred stock is expected to be $5 per share. Preferred stock can be sold under these terms. Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following Calculation of individual costs and WACC data. The firm is in the 35% tax bracket. Debt The firm can raise debt by selling $1,000 par value, 8% coupon Interest rate, 15-year bonds on which annua interest payments wil be made. To sell the ssue. an average discount of $20 per bond would have to be given. The firm also must pay flotation costs of $35 per bond Preferred stock The firm can sell 7.5% preferred stock at its $95-per-share par value. The cost of issuing and selling the preferred stock is expected to be $5 per share. Preferred stock can be sold under these terms