Cost of capitalEdna Recording Studios, Inc., reported earnings available to common stock of $4,000,000 last year. From those earnings, 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, 10% preferred stock, and 65% common stock. It is taxed at a rate of 26%. a.If the market price of the common stock is $35 and dividends are expected to grow at a rate of 9% 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 $9 per share, what is the company's cost of new common stock financing? c.The company can issue $2.16 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to $2 per share. What is the cost of preferred stock financing? d.The company can issue $1,000-par-value, 9% coupon, 11-year bonds that can be sold for $1,210 each. Flotation costs would amount to $20 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e.What is the WACC?