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 capital The weighted average cost is to be measured by using the following weights 45% long term debt, 25% preferred stock, and 30% common stock equally retained earnings, new common stock, or both The 's tax rate is Debt The firm can sel for $1015 a 16 year $1.000 par-value bond paying annual interest at a 700% coupon rate. Aftation cost of 3% of the par value is required Preferred stock 800% (mua dividend) preferred stock having a par value of $100 can be sold for 59An additional fee of $3 per share must be paid to the underwriters Common stock The firm's common stock is currently selling for $59.43 per share the stock has paid a divided that has gradually increased for many years, rising from $2.50 ten years ago to the 53.70 dividend payment. De that the company just recently made the company wants to se new new common stock will sell them 53.00 below the current market price to attract investors, and the company will pay $400 per share in flotation costs a. Calculate the after-tax cost of debt b. Calculate the cost of preferred stock Caleate that in that m adami . a. The after tax cost of debt using the bond's yield to maturity (YTM) is 5.50% sk (Round to two decimal places The after tax cost of debt using the approximation formula is 550% Round to two decimal places) b. The cost of preferred stockis c. The cost of retained earnings is (Round to two decimal places) (Round to two decimal places) The cost of new common stock is % Round to two decimal places) d. Using the cost of retained earnings, the firm's WACCISO Using the cost of new common stock, the firm's WACCI Round to two decimal places) (Round to two decimal places)