Growth Company's current share price is $20.00 and it is expected to pay a $1.00 dividend per 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 preferred shares outstanding, 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?e. 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.