Cost of capital: Edna Recording? Studios, Inc., reported earnings available to common stock of ?$4,200,000 last year. From those? earnings, the company paid a dividend of $1.24 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 45?% ?debt, 10?% preferred? stock, and 45?% common stock. It is taxed at a rate of 40?%.

a.??If the market price of the common stock is ?$37 and dividends are expected to grow at a rate of 6% per year for the foreseeable? future, what is the? company's cost of retained earnings financing??

b.??If underpricing and flotation costs on new shares of common stock amount to ?$5 per? share, what is the? company's cost of new common stock financing??

c.??The company can issue ?$2.09 dividend preferred stock for a market price of ?$32 per share. Flotation costs would amount to ?$3 per share. What is the cost of preferred stock financing??

d.??The company can issue $1,000?-par-value, 8?% ?coupon, 12?-year bonds that can be sold for ?$1,160 each. Flotation costs would amount to $30 per bond. Use the estimation formula to figure the approximate? after-tax cost of debt? financing?

e. Using the cost of retained earnings, r, the firm's WACC is %. Round to two decimal places