GrowthCompany's current share price is $19.95, and it is expected to pay a $1.25 dividend per share next year. Afterthat, thefirm's dividends are expected to grow at a rate of 4.3% per year.

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

b. Growth Company also has preferred stock outstanding that pays a $2.25 per share fixed dividend. If this stock is currently priced at $28.20, what is GrowthCompany's cost of preferredstock?

c. Growth Company has existing debt issued three years ago with a coupon rate of 6.4%. The firm just issued new debt at par with a coupon rate of 6.2%. What is GrowthCompany's cost ofdebt?

d. Growth Company has 5.1 million common shares outstanding and 1.2 million preferred sharesoutstanding, and its equity has a total book value of $50.0 million. Its liabilities have a market value of $20.5 million. If GrowthCompany's common and preferred shares are priced at $19.95 and $28.20, respectively, what is the market value of GrowthCompany's assets?

e. Growth Company faces a 35% tax rate. Given the information in parts a through d and your answers to thoseproblems, what is GrowthCompany's WACC?

Note: Assume that the firm will always be able to utilize its full interest tax shield.