Part II You are the financial manager of C&C Ltd and make use of weighted average cost of capital (WACC) to evaluate a potential project for further expansion. C&C Ltd. will pay a $0.8 per share dividend next year. The company pledges to increase its dividend by 4% per year, indefinitely. The current market of common stock is $25. The current market prices of preferred stocks and zero coupon bonds are $125 and $525 respectively. The company is subject to the corporation tax rate of 25 percent. The following information is extracted from the company's balance sheet this year. Long term liabilities: $'000 Zero coupon bonds payable due in 15 years, $1,000 par value, 3,600 bonds issued 3,600 and outstanding $'000 300 Shareholders' equity: 8% preferred stocks, $100 par value, 4,000 shares authorized, 3,000 shares issued and outstanding Common stocks, $5 par value, 300,000 shares authorized, 200,000 shares issued and outstanding Retained earnings 1,000 300 REQUIRED Calculate cost of common stock, preferred stock and after-tax cost of bond. Calculate the company's weighted average cost of capital (WACC), b)