Johnsons' Enterprise has the following capital structure: Assets $800,000 Debt Preferred stock $140,000 90,000 Common stock 380,000 The common stock is currently selling at $25 a share, pays a cash dividend of $1.10 per share and is growing annually at 6%. The preferred stock pays a cash dividend of $9 and currently sells for $91 a share. The debt pays interest of 8% annually and the company is in the 30% marginal tax bracket. a) Determine the company's weighted average cost of capital. b) The company currently has limited funds available with only $190,000 in retained earnings, after which it will have to issue new shares of common stock. How much total funding can it obtain before it must issue additional common stock? c) What is the new cost of common stock if the company had to pay underwriting fee of 4%? d) If a company uses too much debt financing, why does the cost of capital rise