answer 4 Questions Below

Use the following information for the next several questions, A 30-year, $1000 par value bond with a 8% annual coupon bond sells for $1.250. Preferred stock pays $7 per year and has a selling price of $80? Stock's beta is 1.2, the 30 day T-bill rate is 4%, the market risk premium is 6%, equity-bond RP is 5%, the common stock dividend payment at the end of year 1 is $5, the stock price is $55, and the dividend growth rate is 4%. Tax Rate is 20%. Targets: 40%, 10%, 50%. What is the cost of debt for ACME company? O 8.09% 8.75% 06.15% 5.93% O 11.15% What is the cost of preferred stock for ACME company? 8.75% 0 9.45% O 8.65% 09.13% O 9.45% O 11.2% 11.8% e 12.3% 10.8% O 12.3% Using the cost of debt, preferred stock, and common stock in the past three questions, calculate the WACC for ACME company. 7.9696 0.9.43% @ 9.15% 8.28% 8.75%