Growth Company's current share price is $$20\mathrm{.}05,$ and it is expected to pay a $$1\mathrm{.}15$ dividend per share next year. After that, the firm's dividends are expected to grow at a rate of $3\mathrm{.}8\%$ 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 $$2\mathrm{.}30$ per share fixed dividend. If this stock is currently priced at $$28\mathrm{.}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 $6\mathrm{.}1\%.$ The firm just issued new debt at par with a coupon rate of $6\mathrm{.}5\%.$ What is Growth Company's cost of debt?

d$.$ Growth Company has $4\mathrm{.}7$ million common shares outstanding and $1\mathrm{.}1$ million preferred shares outstanding, and its equity has a total book value of $$50\mathrm{.}3$ million. Its liabilities have a market value of $$19\mathrm{.}5$ million. If Growth Company's common and preferred shares are priced at $$20\mathrm{.}05$ and $$28\mathrm{.}10,$ respectively, what is the market value of Growth Company's assets?

Note: Assume that the firm will always re$.$ 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.