Growth Company's current share price is $20.00 and it is expected to pay a $1.00 dividend por share next year. After that, the firm's dividends are expected to grow at a rate of 4.0% 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 $2.00 per share fixed dividend. If this stock is currently priced at $28.00, what is Growth Company's cost of preferred stock? c. Growth Company has existing debt issued three years ago with a coupon rate of 6.0%. The firm just issued new debt at par with a coupon rate of 6.5%. What is Growth Company's pretax cost of debt? d. Growth Company has 5.0 million common shares outstanding and 1.0 million proferred shares outstandirig, and its equity has a total book value of $50.0 million. Its liabilities have a market value of $20.0 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? . Growth Company faces a 25% 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 required retum (cost of capital) of levered equity is 9% (Round to two decimal places.) b. Growth Company also has preferred stock outstanding that pays a $2.00 per share fixed dividend. If this stock is currently priced at $28.00, what is Growth Company's cost of preferred stock? The cost of capital for preferred stock is 7.14% (Round to two decimal places.) c. Growth Company has existing debt issued three years ago with a coupon rate of 6.0%. The firm just issued new debt at par with a coupon rate of 6.5%. What is Growth Company's cost of debt? (Select from the drop-down menus.) the YTM 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 of the debt. Thus, the pro-tax cost of debt is