ABC Corporation's target capital structure is 50% debt, 30% common stock, and 20% preferred stock. Information regarding the company's cost of capital can be summarized as follows: - Long term debt is the only permanent debt financing. ABC has 20 year bonds which closed at $950 paying a coupon rate of 5% semi annual payments - (par value of $1000) - Preferred stock is priced at $46 per share and pays $4.00 per share annually. Flotation cost $2 per share - Common stock sells for $40 per share and will pay a dividend during the coming year of $1.25(D1=$1.25). Growth is estimated at 5% - The marginal tax rate is 25% - Optimal capital structure is 50\% debt and 30\% common equity and 20% preferred stock. Find the cost of debt (rd) and cost of preferred stock (rp). Find the cost of retained earnings (Use the DCF model for the cost of retained earnings). Calculate the weighted average cost of capital