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 $1.32 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 35% debt. 20% preferred stock, and 45% common stock. It is taxed at a rate of 40%. If the market price of the common stock is $35 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, what is the company's cost of retained earnings financing? If underpricing and flotation costs on new shares of common stock amount to $6 per share, what is the company's cost of new common stock financing? The company can issue $1.73 dividend preferred stock for a market price of $31 per share. Flotation costs would amount to $3 per share. What is the cost of preferred stock financing? The company can issue $1.000-par-value, 12% coupon, 6-year bonds that can be sold for $1, 110 each. Flotation costs would amount to $30 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? (Round to two decimal places.) If the company can issue $1.73 dividend preferred stock for a market price of $31 per share, and flotation costs would amount to $3 per share, the cost of preferred stock financing is 6.18 %. (Round to two decimal places.) If the company can issue $1,000-par-value, 12% coupon, 6-year bonds that can be sold for $1, 110 each, and flotation costs would amount to $30 per bond, using the estimation formula, the approximate after-tax cost of debt financing is %- (Round to two decimal places.)