As an investment manager at H&L Securities, you are preparing for the next mccting of the investment committec which has requested you to assess the capital structure of Industrial Production Limited (IPL), a manufacturer of industrial products. The following information is available to assist your assessment: A. i. Preferred Stock: Industrial Production Limited issued a 10% preferred share which sold for $100 per share par valuc. The cost of issuing and selling the stock was $2 per share. Calculate the cost of this preferred share. (2 marks) ii. Common Stock: The company has a common share with a market price of $25 per share and an expected dividend of $2 per share at the coming year end. Growth rate in dividends has been 5%. Calculate the cost of IPL's common cquity. (2 marks) ill. Debt Determine the after-tax cost of debt. Industrial Production Limited can borrow funds at an interest rate of 11% per year. Assume that the tax rate is 35%. (2 marks) iv. Use the information above to determine the organisation's WACC if the target capital structure comprises 40". debi. 10". preferred stock and 50% common stock. (3 marks) The firm has a beta of 1.2. Market retum equals 14% and a nisk-free rate of retum is 6".. Determine IPL's cost of common equity. marks) it. If the company's capital structure is modified to 30% debt. 25% preferred stock and 45 common stock. what is its new WACC) (3 marks) 1. Industrial Production Limited is expected to pay a year-end dividend of $2.50 per share and its flotation cost is 5%. Investors have projected a growth rate of 12. per annum. What is the cost of retained carnings, using the discounted cash flow approach? (2 marks) iy. Calculate the cost of issuing new common stock. 3 marks)