Calculate the firms WACC (weighted average cost of capital) assuming that internally generated equity will satisfy next years common equity needs. In your solution, in addition to the calculation for WACC, please also show your supporting calculations for the following (16 points):

capital component weights

cost of debt

cost of preferred stock

cost of common equity

You must type in both the answer and all of your work to receive credit.

Be sure to use 4 decimal places (25.25% or 0.2525).

Current assets	3,100		growth rate	7.50%
Property, plant & equip	3,400		coupon on new bonds	7.95%
Total assets	6,500		corporate tax rate	35.00%
			dividend on preferred	8.00%
Current liabilities	1,500		price of common	$24.00
Long-term debt	1,800		price of $100 par value preferred	$60.00
Preferred stock, $100 par	500		anticipated common dividend	$1.65
Common stock, no par	1,200		flotation costs on preferred	$4.00
Retained earnings	1,500		flotation costs on common	$2.50
Total liabilities & equity	6,500