Calculate the firm's WACC (weighted average cost of capital) assuming that internally generated equity will satisty next year's 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).

- a firm has capital structure of 40% debt 15% preferred and 45% common

- new bonds have 10% coupon

- common shares sell at 21.00

- preferred shares sell at 65.00

- common dividend is 2.00

-preferred dividend is 6.00

- flotation costs of 5% would be required to issue new common stock

- flotation costs of $5 would be required to issue new preferred stock

- the firms tax rate is 25%

- net income is projected to be 1,250,000

- common equity can be supplied internally.

- payout of dividends will be 30% of net income.

- the firm is expected to grow at 5% for the foreseeable future.