Calculation of individual costs and WACC Dilion Labs has asked its financial manayor to measure the cost of each specific type of capital as well as the weighted average cost of capital. The woighted avorage cost is to be measured by using the following weights: 50% long-torm debt, 20% preferred stock, and 30% comrhon stock equity (retained earnirgs, new common stock, or both). The firm's tax rate is 24%. Debt The firm can sell for $1015 a 15 year, $1,000-par-value bond paying annual interest at a 12.00% coupon rate. A flotation cost of 3.5% of the par value is required. Preferred stock 8.50% (annual dividend) preferred stock having a par value of $100 can be sold for $98. An additional foe of $2 per share must be paid to the underwriters: Common stock. The firm's common stock is currently seling for $70 per share. The stock has paid a dividend that has gradually increased for marny years, rising from $3.00 ten years ago to the $4.89 dividend payment, D0, that the company just recently made. If the company wants to issue new new common stock, it will sell them $1.50 below the current market price to attract investors, and the company will pay $2.00 per share in tlotation costs. a. Calculate the after-tax cost of debt. a. The after-tax cost of debt using the bond's yield to maturity (VTM) is \%. (Round to two decimal places) from $3.00 ten years ago to the $4.89 dividend payment, D0, that the compary just recently made. If the company wants lo issue new new common 3 tock, a Will sell them $1.50 below the current market price to altract irwestors, and the compary will pary $2.00 per share in fotation costs. a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock. c. Calcutate the cost of commori stock (both retained eamings and new common slock) d. Calculate the WACC for Dilon Labs