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Maschale Corp. wants to issue bonds with a zero coupon bond, a face value of $1,000, and 12 years to maturity. Maschale estimates that the

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Maschale Corp. wants to issue bonds with a zero coupon bond, a face value of $1,000, and 12 years to maturity. Maschale estimates that the bonds will sell for $ 384. Maschale Corp. common stock currently sells for $30 per share. Maschale paid a dividend yesterday of $ 4.00 per share and expects the dividend to grow at a constant rate of 5% per year. Maschale's capital structure is$4 million debt, $6 million common equity and $5 million preferred stock which pays $3.2 dividend and selling at $40 per share. Maschale's marginal tax rate is 35% Calculate the after-tax cost of debt assuming Maschale's bonds are its only debt. Calculate the cost of preferred stock. Calculate the cost of common equity. Calculate the weighted average cost of capital

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