Growth Company's current share price is $ 20.15and it is expected to pay a $ 1.15 dividend per share next year. After that, thefirm's dividends are expected to grow at a rate of 3.9 % per year.

a. What is an estimate of GrowthCompany's cost of equity?

b. Growth Company also has preferred stock outstanding that pays a $ 2.25 per share fixed dividend. If this stock is currently priced at $ 27.95 what is GrowthCompany's cost of preferred stock?

c. Growth Company has existing debt issued three years ago with a coupon rate of 5.9 % The firm just issued new debt at par with a coupon rate of 6.1 % What is Growth Company's cost of debt?

d. Growth Company has 4.8million common shares outstanding and 1.3million preferred shares outstanding, and its equity has a total book value of $ 50.0million. Its liabilities have a market value of $20.2million. If Growth Company's common and preferred shares are priced as in parts(a)and (b),what is the market value of GrowthCompany's assets?

e. Growth Company faces a35 % 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.