Growth Company$$s current share price is $$20$ and it is expected to pay a $$1$ dividend per share next year. After that, the firm$$s dividends are expected to grow at a rate of $4\%$ per year.

$1.$ WhatisanestimateofGrowthCompany$$scostofequity$?$

$2.$ GrowthCompanyalsohaspreferredstockoutstandingthatpaysa$$2$persharefixeddividend.

If this stock is currently priced at $$28,$ what is Growth Company$$s cost of preferred stock?

$3$

$3.$ GrowthCompanyhasexistingdebtissuedthreeyearsagowithacouponrateof$6\%.$Thefirm just issued new debt at par with a coupon rate of $6\mathrm{.}5\%.$ What is Growth Company$$s pretax cost of debt?

$4.$ GrowthCompanyhas$5$millioncommonsharesoutstandingand$1$millionpreferredshares outstanding, and its equity has a total book value of $$50$ million. Its liabilities have a market value of $$20$ million. If Growth Company$$s common and preferred shares are priced as in parts $($a$)$ and $($b$),$ what is the market value of Growth Company$$s assets?

$5.$ GrowthCompanyfacesa$25\%$taxrate.Giventheinformationinparts$($a$)$through$($d$),$and your answers to those problems, what is Growth Company$$s WACC?