collection with each component.

ABC Company needs Tk 32,00,000 for the expansion of its business. The manager of the company decided to raise the funds as follows: I. Issuing common stock for Tk 12,00,000 with Tk. 100 each with flotation cost of 6.5%. The company's next expected dividend is Tk. 22.5 per share and the dividend payout ratio is 34% where the return from its reinvestment is 13.5%. II. III. The firm plans to issue 11% bond with a face value of 2500 for 20 years to manage Tk. 15,00,000. The company is in the tax bracket of 34%. Issuing 8.5% preferred stock for Tk.100 each with flotation cost of 4.5% for collecting the remaining needed capital. From the above data calculate - i. The cost of each components of capital structure. ii. The WACC where the weights are taken as the proportion of