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Help on part D please! Edna Recording Studios, Inc., reported earnings available to common stock of $4, 800,000 last year. From those earnings, the company

Help on part D please! image text in transcribed
Edna Recording Studios, Inc., reported earnings available to common stock of $4, 800,000 last year. From those earnings, the company paid a divided of $1.21 on each of its 1,000.000 common shares outstanding. The capital structure of the company 45% debt. 20% preferred stock, and 35% common stock. It is taxed at a rate of 40%. a. lf the market price of the common stock is $31 and dividends are expected to grow at a rate of 5% per year for the foreseeable future, what is the company's costs of retained earnings financing? b. If underpricing and flotation costs on new shares of common stock amount to $8 per share, what is the company's cost of new common stock financing? c. The company can issue $1.59 dividend preferred stock for a market price of $30 per share. Flotation costs would amount to $2 per share. What is the cost of preferred stock financing? d. The company can issue $1,00-par-value, 12% coupon, 13-year bonds that can be sold for $1, 280 each. Flotation costs would amount to $35 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e. What is the WACC? a. If the market price of the common stock is $31 and dividends are expected to grow at a rate of 5% per year for the foreseeable future, the company's cost of retained earning financing is 9.1 %. (Round to two decimal places.) b. If underpricing and flotation costs on new shares of common stock amount to $8 per share, the company's cost of new common stock financing is 10.52%(Round to two decimal places.) c. If the company can issue $1.59 dividend preferred stock for a market price of $30 per share, and flotation costs would amount to $2 per share, the cost of preferred stock financing is 5.68 %. (Round to two decimal places.) d.. If the company can issue $1,000 par value, 12% coupon, 13-year bonds that can be sold for $ 1, 260 each, and notation costs would amount to $35 per bond. Using the estimation formula, the approximate after-tax cost of debit financing is %. (Round to two decimal places.) Enter your answer in the answer box and then click check

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