given the information for the SXH company below:

Market value costs

Common stock $3,100,000. 12.5%

Bonds. $4,500,000. 7.5%

Preferred stock. $600,000. 4.5%

$8,200,000

Firms tax rate is 25%

1. calcuate capital structure weights

2. given that cost of bond is pretax, calculate WACC

3. what does WACC tell us?

4. if SXH return on capital is less than wacc, what is implication

5. if management decides to sell more bonds to raise debt capital, what is impact of WACC?