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, 85 par value, 300,000 shares authorized, 200,000 shares issued and outstanding Retained earnings 1,000 300 REQUIRED a) Calculate cost of common stock, preferred stock and after-tax cost of bond. b) Calculate the company's weighted average cost of capital (WACC)