Calculation of individual costs and WACC BlackRock, Inc. (BLK) has a capital structure that consists of common stock equity and debt. The market capitalization of its equity is $77.165 billion and its debt has a market value of $6.216 billion. a. Calculate the market value weights for BLK's capital structure. b. Calculate BLK's cost of equity using a beta of 1.21, a risk-free rate of 0.83%, and a market risk premium of 6.30%. c. Calculate BLK's cost of debt using a bond price of $1,052.35, semi-annual coupon payment of $37.50, and 6 years to maturity. d. Calculate BLK's current WACC using a 21% corporate tax rate. a. The market value weight of long-term debt in BLK's capital structure is %. (Round to two decimal places.) The market value weight of common stock equity in BLK's capital structure is %. (Round to two decimal places.) b. BLK's cost of equity using the CAPM is %. (Round to two decimal places.) c. BLK's before-tax cost of debt is %. (Round to two decimal places.) d. BLK's current WACC using a 21% corporate tax rate is %. (Round to two decimal places.) Cost of common stock equity Ross Textiles wishes to measure its cost of common stock equity. The firm's stock is currently selling for $44.52. The firm just recently paid a dividend of $4.02. The firm has been increasing dividends regularly. Five years ago, the dividend was just $2.96. After underpricing and flotation costs, the firm expects to net $40.51 per share on a new issue. a. Determine average annual dividend growth rate over the past 5 years. Using that growth rate, what dividend would you expect the company to pay next year? b. Determine the net proceeds, N., that the firm will actually receive. c. Using the constant-growth valuation model, determine the required return on the company's stock, r. which should equal the cost of retained earnings, r d. Using the constant-growth valuation model, determine the cost of new common stock. a. The average annual dividend growth rate over the past 5 years is %. (Round to two decimal places.) Using that growth rate, the dividend you expect the company to pay next year is $. (Round to two decimal places.) b. The net proceeds, N., the firm will actually receive are $ (Round to two decimal places.) c. Using the constant-growth valuation model, the cost of retained earnings, rs, is %. (Round to two decimal places.) d. Using the constant-growth valuation model, the cost of new common stock. . is %. (Round to two decimal places.)