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Given the following information for the Company ABCD, answer the questions below about the company (answers should be rounded at least to 4 decimal places

Given the following information for the Company ABCD, answer the questions below about the company (answers should be rounded at least to 4 decimal places if given in decimal or to 2 decimal places if in %): Debt 30,000 bonds with a 7 percent semi-annual-coupon rate and a current price quote of 119.80; the bonds have 25 years to maturity. Common stock 1,200,000 shares of common stock; the current price is $65, and the beta of the stock is 1.1. Preferred stock 80,000 shares of 4 percent preferred stock with a current price of $78, and a par value = $100. Market risk premium: 7% Risk-free rate: 4% Tax rate: 40%

a) What are the weights for debt and equity (i.e. the capital structure) at market value?

b) What is the pre-tax cost of debt? And after-tax cost of debt?

c) What is the cost of preferred stocks?

d) What is the cost of equity?

e) What is WACC?

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