Calculation of individual costs and WACC - Land Enterprises is interested in measuring its overall cost of capital. Current investments has gathered the following data. The firm is 35% tax bracket,

Debt - The firm can raise debt by selling 1000.00 par-value, 9% coupon interest rate, 10 year-bonds on which annual interest payments will be made. To sell the issue, an average discount of $35.00 per bond would have to be give. The firm also must pay flotation costs of $15.00 per period.

Preferred stock - The firm can sell 8.5% preferred stock at its $95.00 per share par value. The cost of issuing and selling the stock is expected to be $7 per share. Preferred stock can be sold under these terms.

Common Stock - The common stock is currently selling at $90 per share. they expect to pay cash dividends of $7 per share next year. they have been growing at an annual rate of 6%, and this growth is expected to continue into the future. To sell new shares of common stock, the firm must under price the stock by $4.00 per share, the flotation costs are expected to amount to $7 per share. The firm can sell new common stock under these terms.

Retained earnings - When measuring the cost, the firm does not concern itself with the tax bracket or brokjerage fees of owenrs. It expects to have available $140.000 of retained earnings in the coming year; once these retained earnings are exhausted, the firm will use new common stocks as the form of common stock equity financing.

A. CALCULATE THE AFTER TAX COST OF DEBT? - SHOW WORK!!

B. CALCULATE THE COST OF PREFERRED STOCK? SHOW WORK!!

C. CALCULATE THE COST OF COMMON STOCK? SHOW WORK!

D. CALCULATE THE FIRMS WEIGHTED AVERAGE COST OF CAPITAL STRUCTURE WEIGHTS SHOWN IN THE FOLLOWING TABLE?

LONG TERM DEBT - 30%

PREFERRED STOCK - 20

COMMON STOCK EQUITY 50

TOTAL 100%

PLEASE SHOW WORK SO I KNOW HOW TO DO THIS.