III. You are evaluating Company Z and know the following (all data are on an annual basis except where indicated): R_M= .1067 o_M^2 = .0625 o_(J,M) = 10625 R_RF = .0367 The marginal corporate tax rate is 21%. The YTM (yield to maturity) on the debt of Company Z, taking into account flotation costs is 7.78%. Company Z issued preferred stock for $480.00 per share net of flotation costs. The preferred pays a quarterly dividend of $13.20 per share. The book value of the debt is $679,000,000 and you decide that this is close to the market value of the debt. The market value of all the preferred shares is $106,700,000, and the market value of the common stock is $184,300,000. Please round to four decimal places in your calculations. (SHOW WORK. NO EXCEL) a. What is the annual expected return for Company Z's common stock? b. What is the annual expected return for Company Z's preferred stock (the cost of preferred)? c. What are the weights of the debt, preferred, and common stock? d. What is the annual WACC (weighted average cost of capital) for Company Z