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just help with d & e Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,400,000 last year. From those

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just help with d & e
Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,400,000 last year. From those earnings, the company paid a dividend of $1.26 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 25% debt, 25% preferred stock, and 50% common stock. It is taxed at a rate of 28%. a. If the market price of the common stock is $41 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, what is the company's cost of retained earnings financing? b. If underpricing and flotation costs on new shares of common stock amount to $9 per share, what is the company's cost of new common stock financing? c. The company can issue $1.51 dividend preferred stock for a market price of $30 per share. Flotation costs would amount to $5 per share. What is the cost of preferred stock financing? d. The company can issue $1,000-par-value, 8% coupon, 14-year bonds that can be sold for $1,220 each. Flotation costs would amount to $35 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e. What is the WACC? a. If the market price of the common stock is $41 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, the company's cost of retained earnings financing is 10.29 %. (Round to two decimal places.) b. If underpricing and flotation costs on new shares of common stock amount to $9 per share, the company's cost of new common stock financing is 11.21 %. (Round to two decimal places.) c. If the company can issue $1.51 dividend preferred stock for a market price of $30 per share, and flotation costs would amount to $5 per share, the cost of preferred stock financing is 6.04 %. (Round to two decimal places.) d. If the company can issue $1,000-par-value, 8% coupon, 14-year bonds that can be sold for $1,220 each, and flotation costs would amount to $35 per bond, using the estimation formula, the approximate after-tax cost of debt financing is (%. (Round to two decimal places.)

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