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Alpha Corporation has a target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. The companys bonds have a

Alpha Corporation has a target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. The companys bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for $980. The firms preferred stock sells for $80 and pays a $10 annual dividend. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $30.00 per share, and has a growth rate of 8 percent. The firm's marginal tax rate is 40 percent. What is the companys before-tax cost of debt? What is the companys after-tax cost of debt? What is the firm's cost of preferred stock? What is the firms cost of equity? Calculate the firms WACC.

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