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II. Capital Structures (Round all answers to the second decimal place - .00) The Ferguson Industries has the following capital structure: Assets 131.84Thousands Debt 65.74

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II. Capital Structures (Round all answers to the second decimal place - .00) The Ferguson Industries has the following capital structure: Assets 131.84Thousands Debt 65.74 Thousands Preferred 10.11 Thousands Common 55.99 Thousands The company's 40% tax bracket and the interest on debt is 5.91 percent annually. Their preferred stock is currently selling at $150.05 and pays out dividends of $5.37 per share. The Common Stock is selling for 5675.22 per share paying dividends of S3.43 per share with an annual growth rate of 3 percent. What is the cost of the common stock? % (5 pts) What is the after tax cost of debt? % (5 pts) What is the cost of preferred stock? %(5 pts) What is the firm's WACC? % (5 pts) Which of the three capital structures has the lowest cost? (5 pts)

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