Growth Company's current share price is $19.85 and it is expected to pay a $1.20 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.5% per year.

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 $1.95 per share fixed dividend. If this stock is currently priced at $28.30, 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 issued three years ago with a coupon rate of 6.3%. The firm just issued new debt at par with a coupon rate of 6.7%.

What is Growth Company's cost of debt? (Select from the drop-down menus.)The pre-tax cost of debt is the firm's YTM on current debt. Since the firm recently issued debt at par, then the coupon rate of that debt must be (CHOICES: equal to / less than / greater than) the YTM of the debt. Thus, the pre-tax cost of debt is (CHOICES: 6.3% / 6.7%).

d. Growth Company has 4.9 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of $50.0 million. Its liabilities have a market value of $20.4 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? The market value of assets is $___ million. (Round to two decimal places.)

e. Growth Company faces a 35% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is Growth Company's WACC? The weighted average cost of capital is ___%. (Round to two decimal places.)