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 $1.28 on each of its 1,000,000 common shares outstanding The capital structure of the company includes 30% debt 10% prelered slock, and 60% common stock It is taxed at a rate of 28% a if the market price of the common stock is S42 and dividends are expected to grow at a rate of 7% per year for te foreseeable future, what is the company s cos of retained earnings ba. I uderpricing and fo tation costs on new shares of common is the company's cost of new common stock stock amount to $8 per share, what th c. The company can issue $1.53 dividend preferred stock for a market price of $27 per share. Flotation costs would amount to $3 per share. What is the cost of preferred stock financing? d. The con pany can issue S 1,000 par value 9% coupon, 15 year bonds that can be sold for si 130 each estimation Flotation costs would amount to $25 per bond Use the to figure the approximate after-tax cost of debt financing? e. What is the WACC