Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of following weight: 30% long-term debt, 10% preferred stock, and 60% common stock equity crowned earnings new common stock, or both) The firm's tax rates 24% Debt The firm can sell for $1015 a 15-year $1,000 par value bond paying annual interest at a 900% coupon rale. A flotation cost of 4% of the par value is required Preferred stock 1000% (annual dividend preferred stock having a par value of $100 can be sold for $90 An additional foo of 55 per share must be paid to the underwriters Common stock The firm's common stock is currently selling for $50 per shate. The stock has paid a dividend that has gradually increased for many years, rising from 52 50 ton your made if the company wants to issue now new common stock, it will sell them $200 below the current market price to attract investors, and the company will pay $350 per share in a. Calculate the after-tax cost of debt b. Calculate the cost of proferred stock c. Calculate the cost of common stock (both retained earnings and new common stock) d. Calculate the WACC for Diton Labs a. The aftor-tax cost of debt using the bond's yield to maturity (YTM) is 7.08% (Round to two decimal places) The after-tax cost of debt using the approximation formula is 11.76% (Round to two decimal places) och specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the common stock, or both) The firm's tax rate is 24% A flotation cost of 4% of the par value is required. tional fee of $5 per share must be paid to the underwriters mas gradually increased for many years, rising from $2.50 ten years ago to the $4 48 dividend payment. Do that the company just recently to attract investors, and the company will pay $3,50 per share in flotation costs