Calculation of individual costs and WACC Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 29% tax bracket Debt The firm can raise debit by selling $1.000 par value, 4 coupn interest rate, 12 year bonds on which annual interest payments will be made. To so the issue an average discount of $30 per bond would have to be given. The firm also must pay folation costs of $35 per bond Preferred stock The firm can sol 8% proferred stock at its $110 per share par value. The cost of issuing and selling the preferred stock is expected to be $7 por share. Preferred stock can be sold under these forms Common stock The firm's common stock is currently selling for $70 per share. The firm expects to pay cash dividends of S7 por shared yoar Thelm's dividends have been growing at an annual Tale of 9 and this growth is expected to continue into the future. The stock must be underpriced by S6 por share and fotbon costs are expected to amount to $ por share. The firm can sol now common stock under the Retained earnings When measuring this cost, the firm does not concom itself with the tax bracket or brokerage foes of owners. It expects to have available $130,000 of retained earnings in the coming year, ond these retained earnings are chausted, the firm will us now common stock as the form of common stock oquity financing Calculate the strane oht a. The after-tax cost of debt using the approximation formula is 4.72% (Round to two decimal places)