Cost of capital Edina Recording Studios, Inc., reported earnings available to common stock of 54,600 000 last yeat. From those earnings, the company paid a dividend of $1. 19 on each of us 1.000.000 common outstanding the capital structure of the company includes 25% debt, 20% preferred stock, and 55% common stock It is taxed at a rate al 25% a. If the market price of the common stock is $34 and dividends are expected to grow at a rate of 8% per year for the foreseeable future, what is the company's cost of retained earinga finanong? b. If underpricing and flotation costs on new shares of common stock amount to 39 per share, what is the company's cost of new common stock financing? C. The company can issue 51 58 dividend preferred stock for a market price of 529 per share. Flotation costs would amount to 56 per share. What is the cost of p d. The company can issue $1.000 par value, 6% coupon 13-year bonds that can be sold for $1230 each Flotation costs would amount to $25 per bond Use the estimation formula to fiqure the approximate red stock franen? financing? e. What is the WACC? a. If the market price of the common stock is $34 and dividends are expected to grow at a rate of 0% per year for the foreseeable future the company's cost of retained earnings financing (Round to be b. If underpricing and flotation costs on new shares of common stock amount to 59 per share the company's cost of new common stock financing is (Round to two decimal places) c. If the company can issue $1.58 dividend preferred stock for a market price of $29 per share and folation costs would amount to $6 per share the cost of preferred stock fnancing is Round to be dec d. W the company can issue $1.000 par value 6% coupon, 13-year bonds that can be sold for $1.230 each, and flotation code would amount to 325 per bonding the estimation om te w e te financing is (Round to two decimal places) e. Using the cost of retained earnings, the firm's WACC % (Round to two decimal places) Using the cost of new common stock, the firm's WACCI % (Round to iwo decimal places)