Growth Company's current share price is $20.30 and it is expected to pay a $1.10 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4.2% 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 $1.90 per share fixed dividend. If this stock is currently priced at $28.05, 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 1.3 million preferred shares outstanding, and its equity has a total book value of $50.3 million. Its liabilities have a market value of $20.1 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 38% tax rate. Given the information in parts (a) through (d), and your answers to those problems, what is Growth Company's WACC?