Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,200,000 last year. From those eamings, the company paid a dividend of $1.27 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 25% debt, 15% preferred stock, and 60% common stock. It is taxed at a rate of 21%. a. If the market price of the common stock is $32 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 eamings financing? b. If underpricing and fotation costs on new shares of common stock amount to $6 per share, what is the company's cast of new common stock financing? c. The company can issue $1.83 dividend preferred stock for a market price of $27 per share. Flotation costs would amount to $2 per share. What is the cost of preforred stock financing? d. The company can issue $1,000-par-value, 11% annual coupon, 7 -year bonds that can be sold for $1,170 each. Flotation costs would amount to $20 per bond. What is the after-tax cost of dobt financing? -. What is the WACC? a. If the market price of the common stock is $32 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, the company's cost of retained earnings financing is \%. (Round to two decimal places.)