Growth Company's current share price is $$19\mathrm{.}95$ and it is expected to pay a $$0\mathrm{.}90$ dividend per share next year.

After that, the firm's dividends are expected to grow at a rate of $4\mathrm{.}2\%$ per year.

a$.$ What is an estimate of Growth Company's cost of equity?

b$.$ Growth Company also has preferred stock outstanding that pays a $$1\mathrm{.}95$ per share fixed dividend. If this stock is

currently priced at $$28\mathrm{.}05,$ what is Growth Company's cost of preferred stock?

c$.$ Growth Company has existing debt issued three years ago with a coupon rate of $5\mathrm{.}60\%.$ The firm just issued new deb

at par with a coupon rate of $6\mathrm{.}60\%.$ What is Growth Company's pretax cost of debt?

d$.$ Growth Company has $4\mathrm{.}6$ million common shares outstanding and $1\mathrm{.}3$ million preferred shares outstanding, and its

equity has a total book value of $$50\mathrm{.}1$ million. Its liabilities have a market value of $$19\mathrm{.}86$ 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?

e$.$ Growth Company faces a $30\%$ tax rate. Given the information in parts $($a$)$ through $($d$),$ and your answers to

those problems, what is Growth Company's WACC?

Note: Assume that the firm will always be able to utilize its full interest tax shield.

a$.$ What is an estimate of Growth Company's cost of equity?

The cost of equity capital for Growth Company is

$\%.($Round to two decimal places.$)$