Need help with part e

Cost of capital Edna Recording Studios, Inc., reported eamings available to common stock of $4,200,000 last year. From those eamings, the company paid a dividend of $1.24 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 45% debt, 10% preferred stock, and 45% common stock. It is taxed at a rate of 40%. n stock is $37 and dividends are expected to grow at a rate a 6% per ear for the foreseeable fu re, what is the company's cost o retained earni s financing? If the market price of b. If underpricing and flotation costs on new shares of common stock amount to $5 per share, what is the company's cost of new common stock financing? c. The company can issue $2.09 dividend preferred stock for a market price of $32 per share. Flotation costs would amount to $3 per share. What is the cost of preferred stock financing? d. The company can issue $1,000 par value 8% coupon, 12-year bonds that can be sold or $1,160 each. Flotation costs would amount to $30 per bond. Use the estimation formula figure he appro mate after-tax cost of deb finan?g? e. What is the WACC? a lf he market price c he common stock is S 7 and dividends are expected to grow a a ra e c 6% per year or he foreseeab e ture the compan s cost otretained earnings inanc?n s 9. % ound to tw de m a laces. b. If underpricing and flotation costs on new shares o common stock amount to $5 per share, the compan s cost of new common stock financing s 10.11 % Round to wo decimal places. C the company can issue $2 09 dr end prefe e stock for a mari et pn e o 32 per share, and flot tion costs would amount to $3 per share the cost o referred stock inancing s 7 21 %, ound to two de mal places d. the c m any can issue $1 0 par value 8% co pan, 2-year bonds that can be sold or S1 eac and to ation costs ou amount to S30 er ban using the estimation mula, the approximate after ax cost of er inancingis 3.9 %. (Round to two decimal places.) Using thecost of retained earnings r the firm's WACC 'ris % Roundto two decimal places.) e