outstanding. The capital structure of the company includes 40% debt, 10% preferred stock, and 50% common stock. It is taxed at a rate of 21%. b. If underpricing and flotation costs on new shares of common stock amount to $7 per share, what is the company's cost of new common stock financing? c. The company can issue $2.00 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to $3 per share. What is the cost of preferred stock financing? of debt financing? e. What is the WACC? a. If the market price of the common stock is $40 and dividends are expected to grow at a rate of 6% per year for the foreseeable future, the company's cost of retained earnings financing is \%. (Round to two decimal places.) b. If underpricing and flotation costs on new shares of common stock amount to $7 per share, the company's cost of new common stock financing is \%. (Round to two decimal places.) c. If the company can issue $2.00 dividend preferred stock for a market price of $25 per share, and flotation costs would amount to $3 per share, the cost of preferred stock financing is \%. (Round to two decimal places.) debt financing is \%. (Round to two decimal places.) e. Using the cost of retained earnings, rr, the firm's WACC, ra, is \%. (Round to two decimal places.) Using the cost of new common stock, rn, the firm's WACC, ra, is \%. (Round to two decimal places.)