N Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,800,000 last year From those earnings, the company paid a dividend of $1 16 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 25% debt, 10% proferred stock and 65% common stock. It is taxed at a rate of 28% a. If the market price of the common stock is $30 and dividends are expected to grow at a rate of 9% per year for the foreseeable future, what is the company's cost of related earnings fancing? Ab. If underpricing and notation costs on new shares of common stock amount to $8 per share, what is the company's cost of new common stock c. The company can issue $2 21 dividend preferred stock for a market price of $30 per share. Flotation costs would amount to $5 per share. What is d. The company can issue $1,000-par-value, 12% coupon, 9-year bonds that can be sold for $1.200 each. Flotation costs would amount to $20 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e. What is the WACC? financing? the cost of preferred stock financing? 10 a. If the market price of the common stock is $30 and dividends are expected to grow at a rate of 9% per year for the foreseeable future, the company's cost of retained earnings financing is % (Round to two decimal places)