Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of 54,400,000 last year. From those earnings, the company paid a dividend of $1.31 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 30% debt, 10% preferred stock, and 60% common stock. It is taxed at a rate of 27% If the market price of the common stock is $37 and dividends are expected to grow at a rate of 5% 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 $1.56 dividend preferred stock for a market price of 535 per share. Flotation costs would amount to 55 per share What is the cost or preferred stock financing? d. The company can issue $1,000 par-value, 10% coupon, 11-year bonds that can be sold for $1.260 each. Flotation costs would amount to $25 per bond. Use the estimation formula to figure the approximate after tax cost of debt financing e. What is the WACC? a. If the market price of the common stock is $37 and dividends are expected to grow at a rate of per year for the foreseeable future, the company's cost of retained earnings financing is 3%. (Round to two decimal places.) b. If underpricing and fistution costs on new shares of common stock amount to 85 per sharo, the company's cont of new common stock financing - Round to two decimal places) c. If the company can issue $1,66 dividend proferred stock for a market price of 536 per share, and notation costs would amount to $5 per than the cont of preferred stock financing is 21 % (Round to two decimal places.) d. If the company can ise 51,000-par-value, 10% coupon, 11-year bonds that can be sold for $1.260 each, and flotation costs would amount to $25 per band using the estimation formula, the approximate after-tax cost of debt financing in % Round to two decimal places 6. Using the cost of retained earnings. In the firm's WACC, /,1 % (Round to two decimal placus.) Using the cost of new common stock, the firm's WACC (Round to two decimal places