Manha Corporation uses only debt and equity. Manha is issuing Tk. 1,000 values bond at a market price of Tk. 1080 with 12.5% coupon interest rate, mature in 5 years. Their first dividend is expected to be Tk. 6 which will follow a constant growth rate of 4.5%. Common stocks are currently traded at Tk. 50. The flotation cost for issuing new stock is5%. Manha Corporation has a marginal tax rate of 30%. Their capital mix is 30 % debt and 70% equity. Required: Using the issuance of new stock cost, calculate the WACC for Manha Corporation. b) Max Corporation uses debt, preferred stock and equity. The cost of debt for Max Corporation is 9.5%. They plan to issue some of Tk. 50 par preferred stock with a 12 % dividend. The preferred stock is selling on the market for Tk. 75 and they must pay a flotation cost of Tk. 2 for each preferred stock. The risk-free rate of return is 4.5 %, market rate of return for common stock is 14 % and Beta of firms stock is 1.25. The marginal tax rate is 25%. Max uses 30% debt, 22% preferred stock and 48% common stock. Required: Calculate the WACC for Max Corporation.