B) Calculate the cost for each capital component. 1. Cost of debt (bond). Calculate cost of debt before tax, ka and cost of debt after tax, k. (3 marks) Cost of preferred stock (1% marks) Cost of common stock (common equity) al Retained earnings (1% marks) b. New issue of common cquity if the floatation cost is SR 1.50 per share. (2 marks) C) Calculate the weighted average cost of capital (WACC) for ABC Inc. if the corporation wants to finance using new common equity. (3 marks) D) If the corporation has an investment projects with a return of 10.5%, should it invest in that project or not. Explain your answer. (2 marks)