Pizza Gnomes has 2 million shares of common stock outstanding. The common stock currently sells for $5 per share. The firm also has in issue 3,000 shares of preferred stock selling for a $250 market price. The dividend per share on the preferred stock is $9.5. The firms debt is publicly traded and was recently quoted at 103 percent of face value. The total face value is $5 million. The yield-to-maturity is 14 percent. The risk-free rate is 4 percent, and the market return is 12%. The beta is 1.50 and the tax rate is 20 percent.

What is the weighted average cost of capital?	Answer 1Choose 18.95% 19.45% 11.20% 13.86% 22.50% 16.00%
What is the cost of common stock?	Answer 2Choose 18.95% 19.45% 11.20% 13.86% 22.50% 16.00%
What is the after-tax cost of debt?	Answer 3Choose 18.95% 19.45% 11.20% 13.86% 22.50% 16.00%