Growth Company's current share price is $ 20.20 and it is expected to pay a $ 1.25 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 3.5 % 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 $ 2.20 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 5.7 % . The firm just issued new debt at par with a coupon rate of 6.5 % . What is Growth Company's cost of debt?

d) Growth Company has 5.1 million common shares outstanding and 1.4 million preferred shares outstanding, and its equity has a total book value of $ 50.1 million. Its liabilities have a market value of $ 19.6 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 40 % 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.