Jones Communication has the following capital structure, which it considers to be optimal, debt = 20% (long-term debt), preferred stock of 15% and common stock of 65% Jones Communication offective tax rate is 10%, and investors expect dividends to grow at a constant rate of 5% in the future. Jones Communication paid a dividend of $3.50 per share last year (0) and its stock currently sells at a price of $50 per share. Ten-year Government bonds yield 7% the market risk premium is 6% and Jones Communications beta is 1.2. The following terms would apply to the new security offerings. Perferred: New preferred stock could be sold to the publicat a price of $100 por share, with a dividend of $11. Flotation costs of $5 per share would be incurred Debt: Debt could be sold at an interest rate of 8% Common: Now common equity will be raised only by retained oamings a (3) (2) b. Find the component costs of debt? Find the cost of proferred stock? Find the cost of common stock? What is the WACC? 0 (3) (2) d