Edna Recording Studios, Inc., reported earnings available to common stock of $4,000,000 last year. From those earnings, the company paid a dividend of $1.34 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 30% debt, 15% preferred stock, and 55% common stock. it is taxed at a rate of 26%.

a. If the market price of the common stock is $46 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 under pricing 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 $1.99 dividend preferred stock for a market price of $30 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, 11% coupon, 12-year bonds that can be sold for $1290 each. Flotation costs would amount to $20 per bond. Use the estimation formula to figure the approximateafter-tax cost of debt financing?

e.What is the WACC?