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Consider the following data to solve the problems Sources of capital Capital Debt (corporate bonds) $ 4,100,000 Preferred shares $ 2,200,000 Common shares $ 2,800,000

Consider the following data to solve the problems Sources of capital Capital Debt (corporate bonds) $ 4,100,000 Preferred shares $ 2,200,000 Common shares $ 2,800,000 B. To generate the $ 4.1 million of corporate bond capital, they issued bonds at $ 965 par value, with an annual coupon of $ 100 for the next 10 years, with a flotation cost of $ 10 per bond. C. The issue of preferred shares has a cost of $ 5 per share and will pay a dividend of 10% of its par value of $ 110 per preferred share. D. The risk-free rate is 3.45% and the market return is 11.25%. The company's beta coefficient is 1.23. E. This company has a tax liability of 35%. a-Determine the capital structure (show calculations) b- calculate the cost of debt (show calculations) c- calculate the cost of preferred capital (show calculations) d- calculate the cost of equity capital (common shares) e- determine the weighted average cost of capital (Wacc)

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