Below is information regarding the capital structure of Micro Advantage Incorporated. On the basis of this information you are asked to respond to the following three questions: Required: 1. Micro Advantage issued a $5,850,000 par value, 20-year bond a year ago at 98 (i.e., 98% of par value) with a stated rate of 7%. Today, the bond is selling at 115 (i.e., 115% of par value). If the firm's tax bracket is 30%, what is the current after-tax cost of this debt? 2. Micro Advantage has $5,510,000 preferred stock outstanding that it sold for $23 per share. The preferred stock has a per share par value of $24 and pays a $3 dividend per year. The current market price is $30 per share. The firm's tax bracket is 30%. What is the after-tax cost of the preferred stock? 3. In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 61,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $140 per share. The expected after-tax market return on the firm's common equity is 20%. What is Micro Advantage's weighted-average cost of capital (WACC)? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 In addition to the bonds and preferred stock described in requirements 1 and 2, Micro Advantage has 61,000 shares of common stock outstanding that has a par value of $10 per share and a current market price of $140 per share. The expected after-tax market return on the firm's common equity is 20%. What is Micro Advantage's weighted-average cost of capital (WACC)? (Round "Interest or Dividend Rate", "After-tax Rate or Expected Return" and "Cost of Capital Components" to 2 decimal places (i.e. .1234 = 12.34%), "Weights" to 3 decimal places, and other answers to the nearest whole dollar amount.) Book Value Interest or Dividend Rate After-tax Rate or Expected Return Current Market Weights Values Cost of Capital Components Bond 5,850,000 Preferred Stock $ 5,510,000 6.86% 10.00 % 4.17% $ 6,727,500 % 10.00 % $ 6,887,500 % Common Stock $ 610,000 0.00 % 20.00 % $ 8,540,000 % Total $ 11,970,000 $ 22,155,000 0.000 0.00 % Show less