Homework Problem Cost of Capital The following balance sheet reflects market values of the target proportion of om Asia structure. Assets $256,334 Debt $ 37,154 Pref Stk $ 25,633 Com. Stk $143.547 Fimm A plans to finance the planned projects from the following sources Debt: Existing bonds of similar risk and maturity have an annual coupon 6.3 percet paid semiannually, mature in 10 years, and currently sell for $987.45. The Sommarginales 34%. Preferred Stock: The firm plans to issue 10% preferred stock with a pevale of 532. The shares are expected to sell for 540. Common Stock: The firm will issue new shares to provide the common portion of financing. The most recent dividend, D. was 52.85 and that didenda espect to grow at 25 percent per year. The current share price is $45 So. (Hint: Use the deceat madal 10 in the PP slides) to estimate the cost of common stock D-DI-) Using this information, estimate Firm A's weighted average cost of call Show calculations for the weights, the component costs of capital and the 300 cm component costs in percent to three decimal places and cost of capital cuales (e.g. K. - 6.352%, WACC = 8.259) For the cost of debt liat all the same input to the financial calculator, e.g. PV - X, PT - Deals sheet in pencil