D Question 15 You have been assigned to calculate the Weighted-Average-Cost-of-Capital (WACC) for your small firm. The company has three sources of long-term capital. Its marginal tax rate is 21%. First, there are 2,354,000 shares of common stock outstanding, which are currently trading at $37.51 per share. Recently, your firm announced Earnings per Share (EPS) of $3.32. You expect earnings to grow at 2.55% per year indefinitely. 8 pts Second, the firm has 240,00 shraes of prefered stock outstanding. These shares pay annual (perpetual) dividends of $7.50 and are currently selling for $101.74. Third, there is an issue of 62,500 coupon bonds outstanding. These bonds have a face value of $1,000, mature in seventeen years, and pay 5.74% annual coupons. These instruments are currently trading for $947.51. Based on the assumption, use the Gordon Growth Model to estimate a reasonable return on the firm's commonstock. O 11.63% esc 9.14% 10.54% 8.85% 12.40% Question 16. #1\ * 12 # #3 2 2 3 80 13 $ 000 800 14 % 85 54 4 15 W E R 44 12 5 pes +11 19 * 7 < A 6 & - 8