I		Capital Structure	weight	cost	WACC
	Bonds	$ 3,000,000
	Preferred stock	$ 1,000,000
	Common stock	$ 6,000,000
	Total	$ 10,000,000
II-1	After-tax cost of bonds:	Semi-Annual YTM=
		Annual YTM=
		Cost of Bonds=
II-2	Cost of retained earnings:
		DCF approach
		CAPM approach
		Average
II-3	Cost of preferred stock
II-4	Cost of New Common Stock
II-5a	Amount	Weight	Cost	WACC
Bonds	3,000,000
Preferred Stock	1,000,000
Retained earnings	6,000,000
Total	10,000,000
II-5b	Amount	Weight	Cost	WACC
Bonds	3,000,000
Preferred Stock	1,000,000
New Common Stock	6,000,000
Total	10,000,000