K14 - F WACC Wenling Consulting Services currently has the following capital structure: Source Debt $ 1,020.00 300 Preferred Stock 90.00 1,200 Common Stock $ 65.00 10,000 5 New debt would mature in 15 years, has a coupon rate of 7%, and would be sold for their par value of $1,000. The bonds pay interest annually. 3 The preferred stock pays a $7 dividend annually. LO The common stock has experienced a 8.5% annual dividend grwoth rate and just paid a $1.5 dividend. 11 Assume that Wenling's marginal tax rate is 34% 13 Questions: 14 1. Calculate the component costs of capital for debt, preferred stock, and common stock 16 2. Calculate the weighted average costs of capital (WACC). UNNERE SEE