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Crowntown Solutions has the following information on their capital components. Debt: 9,000 6.2 percent coupon bonds outstanding, with 20 years to maturity and a quoted

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Crowntown Solutions has the following information on their capital components. Debt: 9,000 6.2 percent coupon bonds outstanding, with 20 years to maturity and a quoted price of 104. These bonds pay interest semiannually Common Stock: 225,000 shares of common stock selling for $64.50 per share. The stock has a beta of 85 and will pay a dividend of $2.70 next year. The dividend is expected to grow by 5 percent per year indefinitely. Preferred stock: 8,000 shares of 4.5 percent preferred stock selling at $94 per share. Market: 12 percent expected return, risk free rate of 3.5 percent and a 35 percent tax rate. A. Determine the market value weights of each type of financing. B. Determine the cost of equity (% rate). C. Determine the cost of preferred (% rate). D. Determine the after-tax cost of debt (% rate). E. Determine the WACC

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