Ction is interested in preferred stock, what is the company's WACC?g project with an expected retun of 129%, should it adopt the project? Explain. *Problem #4: Carson's Ribs, Inc. has hired you to calculate its WACC. It currently issues 10-v bonds with an annual coupon of 5.5%. Its bonds sell for $1,075.00 and has a par value of $1,000.000 Perpetual preferred stock from Franklin Inc. sells for $87.50 per share, and it pays an $8.50 annual dividend Its tax rate is 40%. If the company were to sell a new preferred issue, it would incura flotation cost of 4.00% of the price paid by investors. Common stock sells for $45.00 per share and it paid a $1.00 annual dividend last year. Dividends are expected to grow at 5%. If the company were to sell new common stock, it would incur a flotation of 5% of the price paid by investors. a. What is the company's cost of debt for use in calculating WACC? b. What is the company's cost of preferred stock for use in calculating the WACC? c. What is the company's cost of common stock for use in calculating the WACC? d. If its target capital structure is 25% debt, 10% preferred stock, and the remainder in common stock, calculate Franklin, Inc.'s WACC