Growth Company's current share price is $19 85 and s expected to pay a $1.15 dividend per share next year. A ter that he ms ens are expected to grow at a rate of 39% 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 $1.85 per share fixed dividend. If this stock is currently priced at $28.10, what is Growth Company's cost of preferred stock? c Growth Company has existing debt issued three years ago with a coupon rate of 5.7%. The ust issued new debt at par with a coupon rate of 6.8%, What is Growth Company's cost of debt? d. Growth Company has 5.2 million common shares outstanding and 1.3 million preferred shares outstanding, and its equity has a total book value of $50.2 million. Its liabilities have a market value of $20.1 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 38% tax rate. Given the information in parts a through d and your answers to those problems. what is Gro th Company's ACC? 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 required return (cost of capital) of levered equity is | |% (Round to two decimal places) b. Growth Company also has preferred stock outstanding that pays a $1.85per share fixed dividend. If this stock is currently priced at $28.10, what is Growth Company's cost of preferred stock? The cost of capital for preferred stock is (Round to two decimal places ) c Growth Company has existing debt ssued three years ago with a coupon rate of 5.7%. The menus.) st issued new debt at par with a coupon rate of 6 8% What is Growth Company's cost of debt? Select from the drop-down The pre-tax cost of bt s the fim's YTM on curent debt Since the firm recenty issued debt at par then the coupon ate of that debt must betheYT of the debt Thus.the pre-lax V the YTM of the debt. Thus, the pre-tax cost of debt is d. Growth Company has 5.2 million common shares outstanding and 1.3 million preferred shares outstanding, and its equity has a total book value of $50.2 million. Its liabilities have a market value of $20.1 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