calculate the company after tax cost of debt

cost of preferred stock

cost of common stock

WACC

your answer only in the box you cannot attach files

Viduka Construction's CFO wants to estimate the company's WACC. She has collected the

following information:

The company currently has $20-$year bonds outstanding. The bonds have an $8\mathrm{.}5$ percent annual

coupon, a face value of $$1,000,$ and they currently sell for $$945.$

The company's stock has a beta $=1\mathrm{.}20.$

The market risk premium, $k_M-k_{RF},$ equals $5$ percent.

The risk$-$free rate is $6$ percent.

The company has outstanding preferred stock that pays a $$2\mathrm{.}00$ annual dividend. The

preferred stock sells for $$25$ a share.

The company's tax rate is $40$ percent.

The company's capital structure consists of $40$ percent long$-$term debt, $40$ percent common

stock, and $20$ percent preferred stock.