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Must show work for all parts of this question. Pudoj Inc. uses notes payable for short-term funding, on which bankers charge around 6% interest. Pudoj

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Must show work for all parts of this question. Pudoj Inc. uses notes payable for short-term funding, on which bankers charge around 6% interest. Pudoj Inc. has only one issue of corporate bonds outstanding, which are 14-year bonds with 4 3/4% coupon rate selling at $818.55. Issuing new bonds (assume 30 -year maturity) will incur a 6% flotation cost. The tax rate is around 25%. Pudoj Inc. preferred stock pays 1.86% on a $100 par (Dps=\$1.86) and is currently selling for $26.3 per share. Issuing new preferred stock will incur a $1.5-per-share flotation cost. Pudoj Inc. common stock just paid a dividend at $0.50 per share (D0= $0.50 ), and the stock is currently selling at $6.05 per share. Pudoj Inc. common dividends are expected to grow at a constant rate of 4% per year indefinitely. Issuing additional shares of common stock will incur a 5% flotation cost. a. To maintain the present capital structure, how much of the new investment must be financed by common equity? How much will be financed by new issuance of common stock? b. Calculate the estimated after-tax cost of short-term debt for the company. c. Calculate the estimated after-tax cost of long-term debt for the company. d. Calculate the estimated cost of preferred stock for the company. e. Calculate the estimated cost of common equity for the company. Cost of retained earnings: [RateRE]\% Cost of new issuance of common shares. f. Calculate the WACC for the company

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