Cost of capital Edna Recording Studios, Inc., reported earnings avallable to common stock of $4,200.000 last year. From those earnings, the compary paid a dividend of $1.17 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 35% debe, 15% preferred stock, and 50% commen stock. It is tumed at a rate of 21%. a. If the market price of the common stock is 549 and didends are expected to grow at a rate of 8% per year for the foreseeable future, what is the company's cost of retained teamings financing? b. If underpricing and flotation costs on new shares of common stock amount to $8 per shace, what is the company's cost of new common stock financing? c. The company can issue $2.27 dividond preforred stock for a market price of $25 per share. Flotation costs would amount to $4 per share. What is the cost of proforred stock financing? d. The compary can issue $1,000-par-value, 6% annual coupon, 7 -year bonds that can bo sold for $1,250 each. Flotation costs would amount to $30 per bond. What is the after-tax cost of dobt financing? e. What is the WACC? a. If the market price of the common stock is $49 and didends are expected to grow at a rate of B\% per year for the foresoeable future, the company's cost of retained earnings financing is No. (Round to two decimal places.)