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 $1.19 on each of its 1,000,000 cmon shares outstanding. The capital structure of the company includes 35% debt, 15% preferred stock, and 50% common stock. It is taxed at a rate of 21%. a. If the market price of the common stockis S48 and dividends are expected to grow at a rate of 7% per year for the foreseeabla uture, what is the compan s cost of sta ed amin s anc g, b. If underpricing and flotation costs on new shares of common stock amount to S8 per share, what is the company's cost of new common stock financing? c. The company can issue $2.38 dividend preferred stock for a market price of $33 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, 7% coupon, 11-year bonds that can be sold for $1,270 each. Flotation costs would amount to $35 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e. What is the WACC? a lf the market price o the common stock s S4 and dividends are expected o grow at a rate o 7% per year for e foreseeable future the company's costo retained earnings nanci s Round to two decima paces. b. funder ric nga d ctation costs on new shares of common stock amount t sapers are, the company's stofne common stock fiancings 1 %, ound totode a c the co pany can issue $2 38 dividend preferred stock for a market price o S33 per share, and flo ation costs would amount to $3 per share, the cost o preferred stock financing s % Round to two decimal places d. If he company can issue $1 000 par alue, 7% ou on 11-year bonds that can be sold or $1 270 each and flot tion costs would amount to $35 per bond using the estimation formula, e approximate after ex cost of debt na ng s % (Round to two decimal places.) e. Using the cost of retained earnings, r, the firm's WACC, G. is Using the cost of new common stock, r theim's WACC is %. (Round to two decimal places.) % Roundtotwo decimal places.)