Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $$5,000,000$ last year. From those earnings, the company paid a dividend of $$1\mathrm{.}35$ on each of its $1,000,000$

common shares outstanding. The capital structure of the company includes $45\%$ debt, $25\%$ preferred stock, and $30\%$ common stock. It is taxed at a rate of $21\%.$

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 $$2\mathrm{.}17$ dividend preferred stock for a market price of $$32$ per share. Flotation costs would amount to $$4$ per share. What is the cost of preferred stock financing?

d$.$ The company can issue $$1,000-$par$-$value, $10\%$ annual coupon, $12-$year bonds that can be sold for $$1,160$ each. Flotation costs would amount to $$35$ per bond. What is the after$-$tax cost of debt financing?

e$.$ What is the WACC?