debt. What is all 4. Systems Inc. is expected to pay a $1.50 dividend at year end, the dividend is expected to grow at a constant rate of 6% a year, and the common stock currently sells for $75 a share. The yield on company's bonds is 70, and the tax rate is 35%. The target capital structure consists of 25% debt and the rest is common equity. What is the company's WACC if all the equity used is from new stock with flotation cost of 2%? 5. You were recently hired by H Media Inc. to estimate its cost of capital. You obtained the following data: D1 = $1.75; Po = $42.50; g = 7.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock